Arbeitspapier
What Happened to the East German Housing Market? – A Historical Perspective on the Role of Public Funding –
The paper analyses the development of the East German housing market after the reunification of the former German Democratic Republic and the Federal Republic of Germany in 1990. We analyse the dynamics of the East German housing market within the framework of the wellknown stockflow model, proposed by DiPasquale and Wheaton. We show that the today observable disequilibrium to a large extend is caused by postunification housing policy and its strong fiscal incentives to invest into the housing stock. Moreover, in line with the stylized empirical facts, we show that 'hidden reserves' of the housing market were reactivated since the economy of East Germany became market organized. Since initial undersupply was overcome faster than politicians expected, the implemented fiscal stimuli were too strong. In contrast to the widespread opinion that outward migration caused the observable vacancies, this paper shows that not weakness of demand but supply side policies caused the observable disequilibrium.
- Language
-
Englisch
- Bibliographic citation
-
Series: IWH Discussion Papers ; No. 20/2009
- Classification
-
Wirtschaft
Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
Urban, Rural, Regional, Real Estate, and Transportation Economics: Government Policy
Housing Supply and Markets
- Subject
-
housing market transition
housing subsidies
housing supply
East Germany
Transformation des Immobilienmarkts
Subventionen für Immobilien
Wohnraumversorgung
Ostdeutschland
Wohnungsmarkt
Wohnimmobilien
Wohnungsbaupolitik
Wirtschaftliche Anpassung
Neue Bundesländer
- Event
-
Geistige Schöpfung
- (who)
-
Michelsen, Claus
Weiß, Dominik
- Event
-
Veröffentlichung
- (who)
-
Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
- (where)
-
Halle (Saale)
- (when)
-
2009
- Handle
- URN
-
urn:nbn:de:101:1-20091222777
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Michelsen, Claus
- Weiß, Dominik
- Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
Time of origin
- 2009
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Is There a Bubble in the German Housing Market?
High risk of a housing bubble in Germany and most OECD countries
No Germany-wide housing bubble but overvaluation in regional markets and segments
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Signs of new housing bubble in many OECD countries: Lower risk in Germany
The diffusion of "green'' buildings in the housing market: empirics on the long run effects of energy efficiency regulation
Wärmemonitor Deutschland 2014: Rückläufiger Energiebedarf und lange Sanierungszyklen. 3. korrigierte Fassung
Wärmemonitor Deutschland 2014 : Rückläufiger Energiebedarf und lange Sanierungszyklen. 3. korrigierte Fassung
Housing Market Fundamentals, Housing Quality and Energy Consumption: Evidence from Germany
Housing Market Fundamentals, Housing Quality and Energy Consumption : Evidence from Germany
The Market Value of Energy Efficiency in Buildings and the Mode of Tenure
The improvement of housing conditions in post com-munist Germany - Market Mechanisms and Subsidy Impacts
Is There a Bubble in the German Housing Market?
High risk of a housing bubble in Germany and most OECD countries
No Germany-wide housing bubble but overvaluation in regional markets and segments
Real estate companies' size and the production of energy-efficient housing services: Evidence from Germany's apartment housing market
Signs of new housing bubble in many OECD countries: Lower risk in Germany
The diffusion of "green'' buildings in the housing market: empirics on the long run effects of energy efficiency regulation