Insights from a synthetic control group
Real estate is a bedrock of modern economies, serving as both a tangible asset and an essential component of wealth accumulation for individuals and investment portfolios.
Real estate price fluctuations have far-reaching implications, influencing everything from consumer sentiment to financial stability. Understanding the drivers behind price dynamics is not merely an academic pursuit but a necessity for policymakers, investors, and homeowners alike.
The importance of real estate prices makes them critical in policymaking, as governments are trying to influence this market to increase housing affordability. Such policies allow us to evaluate them using the causal inference toolkits.
In this article, we will attempt to assess the impact of the mortgage subsidy program on real estate prices in Poland using the synthetic control group.
Safe Credit 2% Program
In July 2023, the Polish government introduced the ‘Safe Credit 2%’ program. It aimed to help young people and families to buy their…