IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiiiy2020ispecial1p660-678.html
   My bibliography  Save this article

Correlation of Economic Development of Countries with the Potential of their Housing Real Estate Markets: A Case Study in the European Union

Author

Listed:
  • Ireneusz Dabrowski
  • Lukasz Mach
  • Lukasz Mikolajczyk
  • Arkadiusz Kuswik

Abstract

Purpose: The aim of the research is to examine the correlation between economic development in the macroeconomic scale and the development of the real estate market. Design/Methodology/Approach: The tool of the applied computational engineering is cluster analysis, the hierarchical method based on Euclidean distance and Ward’s method (algorithm). Findings: The research process carried out confirmed the existence of a dependence between macroeconomic determinants and parameters of the real estate market. A division into three homogeneous groups of countries, whose development shows signs of similarity, was obtained. This allows making comparisons between individual countries, neglecting their geographical and historical dependences. Practical Implications: The utilitarian usability of applying computational tools used in economic analyses was proved. Originality/Value: Individual clusters make a certain reference point for particular countries. The obtained results offer the possibility of applying a suitable strategy which provides bases for development and also the possibility of verifying its effects against a whole group.

Suggested Citation

  • Ireneusz Dabrowski & Lukasz Mach & Lukasz Mikolajczyk & Arkadiusz Kuswik, 2020. "Correlation of Economic Development of Countries with the Potential of their Housing Real Estate Markets: A Case Study in the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 660-678.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:special1:p:660-678
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/journal/1784/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Glenn Milligan & Martha Cooper, 1988. "A study of standardization of variables in cluster analysis," Journal of Classification, Springer;The Classification Society, vol. 5(2), pages 181-204, September.
    2. Lutz, Christoph & Newlands, Gemma, 2018. "Consumer segmentation within the sharing economy: The case of Airbnb," Journal of Business Research, Elsevier, vol. 88(C), pages 187-196.
    3. Glenn Milligan & Martha Cooper, 1985. "An examination of procedures for determining the number of clusters in a data set," Psychometrika, Springer;The Psychometric Society, vol. 50(2), pages 159-179, June.
    4. Huang, Yuting & Li, Qiang & Liow, Kim Hiang & Zhou, Xiaoxia, 2020. "Is Housing the Business Cycle? A Multiresolution Analysis for OECD Countries," Journal of Housing Economics, Elsevier, vol. 49(C).
    5. Brzezicka, Justyna & Wisniewski, Radoslaw & Figurska, Marta, 2018. "Disequilibrium in the real estate market: Evidence from Poland," Land Use Policy, Elsevier, vol. 78(C), pages 515-531.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elżbieta Jasińska & Edward Preweda & Piotr Łazarz, 2023. "Renewable Energy Sources in the Residential Property Market, Exemplified by the City of Krakow (Poland)," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    2. Renigier-Biłozor, Małgorzata & Janowski, Artur & Walacik, Marek & Chmielewska, Aneta, 2022. "Modern challenges of property market analysis- homogeneous areas determination," Land Use Policy, Elsevier, vol. 119(C).
    3. Sebastian Kokot, 2021. "Primary Housing Market in the Context of Wages and Creditworthiness in Selected Cities in Poland in the Years 2006-2019," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 1025-1040.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karolina Pawlak & Luboš Smutka & Pavel Kotyza, 2021. "Agricultural Potential of the EU Countries: How Far Are They from the USA?," Agriculture, MDPI, vol. 11(4), pages 1-21, March.
    2. Henner Gimpel & Daniel Rau & Maximilian Röglinger, 2018. "Understanding FinTech start-ups – a taxonomy of consumer-oriented service offerings," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 245-264, August.
    3. Martin Christian Höcker & Yassien Bachtal & Andreas Pfnür, 2022. "Work from home: bane or blessing? Implications for corporate real estate strategies [Work from Home: Fluch oder Segen? Implikationen für das betriebliche Immobilienmanagement]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 8(2), pages 101-137, October.
    4. Julian Rossbroich & Jeffrey Durieux & Tom F. Wilderjans, 2022. "Model Selection Strategies for Determining the Optimal Number of Overlapping Clusters in Additive Overlapping Partitional Clustering," Journal of Classification, Springer;The Classification Society, vol. 39(2), pages 264-301, July.
    5. Weinand, J.M. & McKenna, R. & Fichtner, W., 2019. "Developing a municipality typology for modelling decentralised energy systems," Utilities Policy, Elsevier, vol. 57(C), pages 75-96.
    6. Ying Liu & Sudha Ram & Robert F. Lusch & Michael Brusco, 2010. "Multicriterion Market Segmentation: A New Model, Implementation, and Evaluation," Marketing Science, INFORMS, vol. 29(5), pages 880-894, 09-10.
    7. Douglas Steinley, 2007. "Validating Clusters with the Lower Bound for Sum-of-Squares Error," Psychometrika, Springer;The Psychometric Society, vol. 72(1), pages 93-106, March.
    8. Vivien Kana Zeumo & Alexis Tsoukiàs & Blaise Some, 2012. "A new methodology for multidimensional poverty measurement based on the capability approach," Working Papers hal-00874627, HAL.
    9. Vivien Kana-Zeumo & Alexis Tsoukiàs & Blaise Somé, 2014. "A new methodology for multidimensional poverty measurement based on the capability approach," Post-Print hal-01510900, HAL.
    10. Mark Chiang & Boris Mirkin, 2010. "Intelligent Choice of the Number of Clusters in K-Means Clustering: An Experimental Study with Different Cluster Spreads," Journal of Classification, Springer;The Classification Society, vol. 27(1), pages 3-40, March.
    11. Liu, Pei-chen Barry & Hansen, Mark & Mukherjee, Avijit, 2008. "Scenario-based air traffic flow management: From theory to practice," Transportation Research Part B: Methodological, Elsevier, vol. 42(7-8), pages 685-702, August.
    12. Hélène Syed Zwick & S. Ali Shah Syed, 2017. "The polarization impact of the crisis on the Eurozone labour markets: a hierarchical cluster analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 24(7), pages 472-476, April.
    13. Goethner, Maximilian & Hornuf, Lars & Regner, Tobias, 2021. "Protecting investors in equity crowdfunding: An empirical analysis of the small investor protection act," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    14. Giuseppe RICCIARDO LAMONICA, 2002. "La funzionalita' nelle zone omogenee delle Marche," Working Papers 165, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    15. Roberto Rocci & Stefano Antonio Gattone & Roberto Di Mari, 2018. "A data driven equivariant approach to constrained Gaussian mixture modeling," Advances in Data Analysis and Classification, Springer;German Classification Society - Gesellschaft für Klassifikation (GfKl);Japanese Classification Society (JCS);Classification and Data Analysis Group of the Italian Statistical Society (CLADAG);International Federation of Classification Societies (IFCS), vol. 12(2), pages 235-260, June.
    16. Dawid Majcherek & Marzenna Anna Weresa & Christina Ciecierski, 2020. "Understanding Regional Risk Factors for Cancer: A Cluster Analysis of Lifestyle, Environment and Socio-Economic Status in Poland," Sustainability, MDPI, vol. 12(21), pages 1-15, October.
    17. Pennings, J.S.J. & van Kranenburg, H.L. & Hagedoorn, J., 2005. "Past, present and future of the telecommunications industry," Research Memorandum 016, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    18. Li-Xuan Qin & Steven G. Self, 2006. "The Clustering of Regression Models Method with Applications in Gene Expression Data," Biometrics, The International Biometric Society, vol. 62(2), pages 526-533, June.
    19. Caroline Méjean & Pauline Macouillard & Sandrine Péneau & Camille Lassale & Serge Hercberg & Katia Castetbon, 2014. "Association of Perception of Front-of-Pack Labels with Dietary, Lifestyle and Health Characteristics," PLOS ONE, Public Library of Science, vol. 9(3), pages 1-11, March.
    20. Li, Pai-Ling & Chiou, Jeng-Min, 2011. "Identifying cluster number for subspace projected functional data clustering," Computational Statistics & Data Analysis, Elsevier, vol. 55(6), pages 2090-2103, June.

    More about this item

    Keywords

    real estate market; economy; segmentation; cluster analysis; development; Ward's method; Euclidean distance;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxiii:y:2020:i:special1:p:660-678. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.