Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/79706
Title: Analysing Malta’s housing supply–price relationship : a stock-flow approach
Authors: Grech, Daniel (2021)
Keywords: Housing -- Prices -- Malta
Elasticity (Economics) -- Malta
Stock-flow analysis -- Malta
Time-series analysis
Issue Date: 2021
Citation: Grech, D. (2021). Analysing Malta’s housing supply–price relationship: a stock-flow approach (Bachelor's dissertation).
Abstract: This dissertation analyses the relationship between the housing supply and house prices in Malta and Gozo. The relationship underpins important implications about house prices, the speed of adjustment of housing markets and housing affordability. This relationship is analysed using a stock-flow model of Malta’s housing market estimated using an error correction model - a macroeconomic approach in which both the demand and supply sides of the housing market are estimated in the long and short run. The estimates show that Malta’s long run price elasticity of housing supply is fairly elastic, with housing supply increasing proportionally more than prices in the long run. In the short run, the adjustment of dwelling investment to its long-run equilibrium is found to be slow (at 19.5% per year), whilst house prices are found to adjust far quicker (at 56.1% per year). Increases in the housing stock are found to decrease house prices in the long run. These results show that although Malta’s housing supply is slow to react in the short run, it does react strongly in the long run. This can put pressure on prices in the short run especially in the presence of a large shock. However, in the long run, supply increases proportionally more than prices which makes up for the previous shock, which pushes the potential price down.
Description: B.Com. (Hons)(Melit.)
URI: https://www.um.edu.mt/library/oar/handle/123456789/79706
Appears in Collections:Dissertations - FacEma - 2021
Dissertations - FacEMAEco - 2021

Files in This Item:
File Description SizeFormat 
21BEC009.pdf
  Restricted Access
1.28 MBAdobe PDFView/Open Request a copy


Items in OAR@UM are protected by copyright, with all rights reserved, unless otherwise indicated.