Is there a Real Estate Bubble in Brazil?
IPEA, Brazilian Institute for Applied Economic Research
Download Document| Date Published | 2012 |
| Version | |
| Primary Author | Mário Jorge Mendonça |
| Other Authors | Adolfo Sachsida |
| Theme | Real Estate Cycles and Bubbles |
| Country | Brazil |
Abstract
This article verifies the occurrence of a real estate bubble in the Brazilian economy. Overall, our results suggest the existence of a bubble in the real estate sector of the economy. The Austrian School of economics provides a solid explanation to this phenomenon, which are reinforced by statistical techniques, suggesting the Federal government, with equivocate fiscal and monetary policy, as the main responsible for the creation of this problem.