Year of Graduation
Testing for the Bubble in the Real Estate Market in Global Oil Capitals
This work analyses development of speculative bubbles in real estate markets in world oil capitals: Moscow (Russia), Alma-Aty (Kazakhstan), Houston (Texas, USA), Anchorage (Alaska, USA) Calgary (Alberta, Canada), Edmonton (Alberta, Canada) and Oslo (Norway). Results of the bubble diagnosis are being interpreted in the framework of resource curse theory. Bubbles were detected in 4 cities out of 7. Dependence between resource curse and the level of speculative overpricing should be examined deeper because of contradictory results. It is important to note that in 3 out of 4 oil capitals real estate bubble correction began a year before oil price slump; in all cities correction corresponds to the period of rise of national interest rates.