Book contents
- The Israeli Economy, 1995–2017
- The Israeli Economy, 1995–2017
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Preface
- 1 Lights and Shadows in the Market Economy
- Part I Government Policy and Macroeconomic Developments
- Part II Reforms and Their Effects
- Part III Investment in Human Capital, Productivity, and Inequality
- Part IV Key Issues in Various Sectors
- 17 The High-Tech Sector
- 18 The Israeli Housing Market: Structure, Boom, and Policy Response
- 19 Policy Tools to Promote Environmental Quality in Israel: A Comparison of Economic Tools with Direct Regulation
- Index
- References
18 - The Israeli Housing Market: Structure, Boom, and Policy Response
from Part IV - Key Issues in Various Sectors
Published online by Cambridge University Press: 04 February 2021
Book contents
- The Israeli Economy, 1995–2017
- The Israeli Economy, 1995–2017
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Preface
- 1 Lights and Shadows in the Market Economy
- Part I Government Policy and Macroeconomic Developments
- Part II Reforms and Their Effects
- Part III Investment in Human Capital, Productivity, and Inequality
- Part IV Key Issues in Various Sectors
- 17 The High-Tech Sector
- 18 The Israeli Housing Market: Structure, Boom, and Policy Response
- 19 Policy Tools to Promote Environmental Quality in Israel: A Comparison of Economic Tools with Direct Regulation
- Index
- References
Summary
The dramatic and continual increase in housing prices after 2008 was a major political issue in this period. Large interest cuts suffice to explain the growth in the price-rent ratio. Rising average income explains most of the growth in rents, which, properly calculated, was also high (though less than that of prices) in this period. Contrary to the general belief, population increase did not play much of a role. Owing to endogenous policy response, housing supply is more elastic than an institutional analysis would suggest. That response, which favoured owner-occupancy over rental, was driven mainly by the salience of the headline housing price index.
- Type
- Chapter
- Information
- The Israeli Economy, 1995–2017Light and Shadow in a Market Economy, pp. 555 - 586Publisher: Cambridge University PressPrint publication year: 2021
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