1. bookVolume 26 (2018): Issue 4 (December 2018)
Journal Details
First Published
16 May 2013
Publication timeframe
4 times per year
access type Open Access

Synergistic Network Connectivity among Urban Areas Based on Non-Linear Model of Housing Prices Dynamics

Published Online: 18 Jan 2019
Page range: 22 - 34
Journal Details
First Published
16 May 2013
Publication timeframe
4 times per year

The assumption of a strong positive relationship between the specificity of an urban area and the operation of the housing market, which responds to megatrends in the market environment, has been the foundation of the research concept adopted for this study. The study treats the housing markets as complex, adaptive dynamic systems which develop through synergistic network responses. This paper employs a nonlinear critically-damped harmonic oscillator model and phase diagrams to describe the dynamics of housing prices (in the years 2006-2016) in order to demonstrate the synergistic network connections in selected Polish cities. In another important part of the study, the authors propose to employ non-classical dynamic measures, i.e. the absolute time of delay, relaxation time and a long-term level of equilibrium. The study has shown that network connections are strongly synchronized during periods of housing market instability (2006-2007), whereas the process of unsynchronization is observed during a period of stability (2008-2016). Moreover, phase diagrams have been used to demonstrate the similarity of trends in housing prices as well as the shapes of individual trajectories and the existence of multiple points of quasi-equilibrium.


Alagidede P., 2012, The Economy And The Construction Sector In West Africa. In: Construction In West Africa, Accra: Epp Book Services Ltd, Pp. 1-32.Search in Google Scholar

Arthur W. B., 1999, Complexity And The Economy, Science, 284 (5411), 107-109.Search in Google Scholar

Ashton P., 2009, An Appetite For Yield: The Anatomy Of The Subprime Mortgage Crisis. Environment And Planning, A. 41(6), 1420-1441.Search in Google Scholar

Azmi N. N. K., Adam M. B., Shitan M., Ali N. M., 2017, Modification Of Smoothing In 4253h, In Aip Conference Proceedings, Aip Publishing, (1842) 1, P. 030-035.Search in Google Scholar

Ball M., 2013, Housing Policy And Economic Power: The Political Economy Of Owner Occupation, Routledge.Search in Google Scholar

Bełej M., 2016, Ekonomia Złożoności W Badaniach Rynku Nieruchomości (The Economics Of Complexity In Real Estate Market Studies), Studia Ekonomiczne (Economic Studies), 3 (Xc) 2016, 462-482.Search in Google Scholar

Bourassa S. C., Cantoni E., Hoesli M., 2010, Predicting House Prices With Spatial Dependence: A Comparison Of Alternative Methods, Journal Of Real Estate Research,32(2), 139-159.Search in Google Scholar

Bowen W. M., Mikelbank B.A., Prestegaard D.M., 2001, Theoretical And Empirical Considerations Regarding Space In Hedonic Housing Price Model Applications, Growth And Change, 32(4), 466-490.Search in Google Scholar

Carrillo P. E., 2012, An Empirical Stationary Equilibrium Search Model Of The Housing Market, International Economic Review, 53(1), 203-234.Search in Google Scholar

Campbell J. Y., Cocco J. F., 2003, Household Risk Management And Optimal Mortgage Choice, The Quarterly Journal Of Economics, 118(4), 1449-1494.Search in Google Scholar

Case K. E., Quigley J. M., Shiller R. J., 2005, Comparing Wealth Effects: The Stock Market Versus The Housing Market, Advances In Macroeconomics, 5(1).Search in Google Scholar

Cellmer R., Bełej M., Źróbek S., Kovač M. Š.,2014, Urban Land Value Maps - A Methodological Approach, Geodetski Vestnik, 58 (3), 535-551.Search in Google Scholar

Cellmer R., Cichulska A., Renigier-Biłozor M., Biłozor A., 2018, Application Of Mixed-Effect Regression Models For Compiling A Land Value Map, Proceedings - 2018 Baltic Geodetic Congress, Bgc-Geomatics, Pp. 91-96, Doi: 10.1109/Bgc-Geomatics.2018.00017.10.1109/Bgc-Geomatics.2018.00017Open DOISearch in Google Scholar

Cellmer R., Jasiński J., 2016, Analysis Of Housing Development Activity In Poland From 2005-2014, Real Estate Management And Valuation, Vol. 24, Issue 4, Doi: 10.1515/Remav-2016-0029.10.1515/Remav-2016-0029Open DOISearch in Google Scholar

Colander D., Holt R., Rosser B., 2004, The Changing Face Of Mainstream Economics, Review Of Political Economy, 16(4), 485-499.Search in Google Scholar

Coulson E., 2008, Hedonic Methods And Housing Markets Chapter 3: A Brief Survey And Interpretation Of Hedonic Parameters, Hedonic Methods And Housing Markets, 52.Search in Google Scholar

Davidoff T., 2006, Labor Income, Housing Prices, And Homeownership, Journal Of Urban Economics, 59(2), 209-235.Search in Google Scholar

Demyanyk Y., Van Hemert O., 2011, Understanding The Subprime Mortgage Crisis, Review Of Financial Studies, 24(6), 1848-1880.Search in Google Scholar

Dipasquale D., Wheaton W. C., 1994, Housing Market Dynamics And The Future Of Housing Prices, Journal Of Urban Economics, 35(1), 1-27.Search in Google Scholar

Dittman I., 2013, Primary And Secondary Residential Real Estate Markets In Poland - Analogies In Offer And Transaction Price Development, Real Estate Management And Valuation, (21) 1, 39-48.Search in Google Scholar

Domański R., 2012, Ewolucyjna Gospodarka Przestrzenna, Wydawnictwo Uniwersytetu Ekonomicznego: Poznań.Search in Google Scholar

Galster G., 1996, William Grigsby And The Analysis Of Housing Sub-Markets And Filtering, Urban Studies, 33(10), 1797-1805.Search in Google Scholar

Gradzewicz M., Growiec J., Hagemejer J., Popowski P., 2010, Cykl Koniunkturalny W Polsce-Wnioski Z Analizy Spektralnej (Business Cycle In Poland - Conclusions Drawn From Spectral Analysis), Bank I Kredyt (Bank And Loan), 41(5), 41-76.Search in Google Scholar

Heckman J. J., 2008, Econometric Causality, International Statistical Review, 76(1), 1-27.Search in Google Scholar

Ideand K., Sornette D.D., 2002, Oscillatory Finite-Time Singularities In Finance, Population And Rupture, Physica A, 307, 63-106.Search in Google Scholar

Jakimowicz A., 2010, Źródła Niestabilności Struktur Rynkowych (Sources Of Instability Of Market Structures), Wydawnictwo Naukowe Pwn (Pwn Scientific Publishers), Warszawa.Search in Google Scholar

Karagiannis T., Faloutsos M., Molle M., 2003, A User-Friendly Self-Similarity Analysis Tool, Acm Sigcomm Computer Communication Review, 33(3), 81-93.Search in Google Scholar

Kokot S., 2017, Comparative Analysis Of Hedonic And Filtered Indexes In Selected Cities, Real Estate Management And Valuation, 25(3), 40-50.Search in Google Scholar

Kokot S., Bas M., 2013, Evaluation Of The Applicability Of Statistical Methods In Studies On Price Dynamics On The Real Estate Market, Real Estate Management And Valuation, 21(1), 49-58.Search in Google Scholar

Lis P., 2012, Wahania Cykliczne Rynków Mieszkaniowych. Aspekty Teoretyczne I Praktyczne (Cyclical Fluctuations Of Residential Real Estate Markets. Theoretical And Practical Aspects), Wydawnictwo Adam Marszałek (Adam Marszałek Publishing), Toruń.Search in Google Scholar

Mizen P., 2008, The Credit Crunch Of 2007-2008: A Discussion Of The Background, Market Reactions, And Policy Responses, Federal Reserve Bank Of St. Louis Review, 90(5), 531-567.Search in Google Scholar

Parysek J.J., 2008, Urbanizacja I Niektóre Współczesne Idee, Koncepcje I Modele Planowania Rozwoju Miast (Urbanization And Certain Modern Ideas, Concepts And Planning Models Of City Development), Współczesne Kierunki I Wymiary Procesów Urbanizacji (Current Directions And Measures Of Urbanization Processes). Uniwersytet Opolski (University Of Opole), Opole, 11-26.Search in Google Scholar

Patinkin D. A., 1974, Note On The Stability Of Metzler's Phase Diagram, Journal Of Political Economy, 82(3), 641-644.Search in Google Scholar

Quirk J., Ruppert R. W., 1968, Global Stability And Phase Diagrams, Economic Inquiry, 6(4), 311.Search in Google Scholar

Renigier-Biłozor M., Biłozor A., Wisniewski R., Rating Engineering Of Real Estate Markets As The Condition Of Urban Areas Assessment, Land Use Policy, 61, 511-525.Search in Google Scholar

Robinson D. F., Graham N., 2018, Legal Pluralisms, Justice And Spatial Conflicts: New Diirections In Legal Geography, The Geographical Journal, 184(1), 3-7.Search in Google Scholar

Roubini N., Mihm S., Crisis Economics: A Crash Course In The Future Of Finance, Penguin.Search in Google Scholar

Sandoval L. Jr., Franca I.P., 2011, Shocks In Financial Markets, Price Expectation, And Damped Harmonic Oscillators, Http://Arxiv.Org/Abs/1103.1992v2.Search in Google Scholar

Scanlon K., Whitehead C., 2011, The Uk Mortgage Market: Responding To Volatility, Journal Of Housing And The Built Environment, 26(3), 277-293.Search in Google Scholar

Skifter A. H., Andersson R., Wessel T., Vilkama K., 2016, The Impact Of Housing Policies And Housing Markets On Ethnic Spatial Segregation: Comparing The Capital Cities Of Four Nordic Welfare States, International Journal Of Housing Policy, 16(1), 1-30.Search in Google Scholar

Stiglitz J. E., 2002, Information And The Change In The Paradigm In Economics, The American Economic Review, 92 (3), 460-50.Search in Google Scholar

Szczepańska A., 2017, Residential Property Market In The Functional Urban Area Of Olsztyn In The Context Of Demographic Changes, Real Estate Management And Valuation, Vol. 25, No. 3, 30-39, Doi: 10.1515/Remav-2017-0020.10.1515/Remav-2017-0020Open DOISearch in Google Scholar

Szczepańska A., Senetra A., Wasilewicz-Pszczółkowska M., 2015, The Effect Of Road Traffic Noise On The Prices Of Residential Property - The Example Of A European City, Transportation Research Part D, 36, Pp. 167-177.Search in Google Scholar

Taylor J. B., 2007, Housing And Monetary Policy, National Bureau Of Economic Research, (No. W13682).Search in Google Scholar

Trojanek R., Huderek-Glapska S., 2018, Measuring The Noise Cost Of Aviation - The Association Between The Limited Use Area Around Warszawa Chopin Airport And Property Values, Journal Of Air Transport Management, 67, 103-114.Search in Google Scholar

Valente J., Wu S., Gelfand A., Sirmans C. F., 2005, Apartment Rent Prediction Using Spatial Modeling. Journal Of Real Estate Research, 27(1), 105-36.Search in Google Scholar

Velleman P. F., 1997, Robust Nonlinear Data Smoothers: Definitions And Recommendations, Proceedings Of The National Academy Of Sciences, 74(2), 434-436.Search in Google Scholar

Witt U., 2008, What Is Specific About Evolutionary Economics? Journal Of Evolutionary Economics, Http://Dx.Doi.Org/10.1007/S00191-008-0107-7.10.1007/S00191-008-0107-7Open DOISearch in Google Scholar

Wojtyna A., 2008, Współczesna Ekonomia-Kontynuacja Czy Poszukiwanie Paradygmatu?(Modern-Day Economy-Continuation Or Seeking A Paradigm), Ekonomista (The Economist) 2008(1), 9-32.Search in Google Scholar

Zhu J., Xu Q., Pan Y., Qiu L., Peng Y., Bao H., 2018, Land-Acquisition And Resettlement (Lar) Conflicts: A Perspective Of Spatial Injustice Of Urban Public Resources Allocation, Sustainability, 10 (3), 884.Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo