Finance and Pensions & Investments Blog

The value of housing in Spain has increased by 3.6 from 1997 to 2007, which corresponds to the real estate boom. According to the study in 1998 was necessary to use the 5-year average salary to buy a house of 90 m2, while in 2007 it was necessary 12 years.

Responsible for 84% of the increase in housing prices during the boom was the price of land, compared to rising prices of the building that represented only 16%. The Basque Country is the region where the expensive price of land has more impact on the price of housing with 91% of the total, said Ezequiel Uriel, director of the report.

The autonomous communities that offer the greatest capital stock of housing with 53% in Spain in 2007 were Catalonia (993,395,000), Comunidad de Madrid (928,782,000) and Andalusia (771,522,000). On the other hand, Andalucía, Ceuta and Melilla are the regions where it has increased the value of housing between 1998 and 2007.

During the period that has lasted the housing bubble, housing prices have grown at an average annual rate of 12% as did the CPI to 2.9% annually. The most populated municipalities (more than 100 000 inhabitants) and the coastal present higher prices.

The Community of Madrid is the region with the 2007 housing price per square meter high (3,221 per m2) and the lowest price we found in Extremadura to 887 per m2).

Francisco Perez, director of the Ivie, wanted to point out that “have to analyze the consequences of a housing bubble of this magnitude has had on the growth pattern and learn from it, since the rate of housing production has led to a surplus and now must adjust. “Both experts agree that the housing boom could happen again but do not venture to predict when.

All data in this study appear in the monograph “The capital stock of housing in Spain and its geographical distribution (1900-2007), directed by Ezequiel Uriel, a professor at the University of Valencia and Ivie researcher and conducted in collaboration with Carlos Albert, Eva and Vincent Benages Cucarella, Ivie technicians.

Elinor Ostrom, professor at the University of Indiana (USA), is the first woman to win the Nobel Prize in Economics is awarded since 1969, for his analysis of economic governance, especially the commons. “Ostrom said stay stunned Upon learning of the award. “It’s a great and exciting surprise,” he said.

The U.S. also Oliver Williamson, a professor at the University of California at Berkeley, was honored for his theories “that indicate that large corporations are, first, because they are efficient,” and for “his analysis of political governance, especially in regarding the limits of the company, “ie, how some of the economic measures are decided in other markets and within firms.

Ostrom was born in Los Angeles in 1933 and is a lecturer in political science from the University of California. He also founded and directed the Center for the Study of Institutional Diversity at the University of Arizona. This research bases its work on the analysis of public property management, whose work has challenged the conventional wisdom that common property is managed poorly and should be regulated by central authorities or be privatized.

For his part, Oliver Williamson received his doctorate in economics in 1963 at Carnegie Mellon University in Pittsburgh, and professor at the University of Berkeley (California). The Economist has discovered in his work that markets and hierarchical organizations represent corporate governance structures that differ in their approaches towards the resolution of conflicts of interest.

The two winners will share equally the officially known as Sveriges Riksbank Prize in Economic Sciences and endowed with 10 million kronor (1.4 million U.S. dollars).

The Nobel Prize in Economics was instituted by the Bank of Sweden in 1969 and is the only award not established left Alfred Nobel in his will. Last year the award went to U.S. researcher and broadcaster Paul Krugman. This is the last of six Nobel announced this year.