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A Roof Over Risk: A House Price-at-Risk Framework for Hungary

Tibor Szendrei, Nikolett Vágó, Katalin Varga

arXiv 20 Feb 2026 · Econometrics

arXiv:2602.18592 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper develops a House Price-at-Risk framework to examine how housing subsidies, credit conditions, and supply factors influence the distribution of house price growth in Hungary. Using quantile regression with adaptive LASSO variable selection, we identify variables driving downside versus upside risks across multiple horizons. Financial stress dominates the lower tail at short horizons, while unemployment and affordability constraints become the primary drivers of downside risk at longer horizons. Housing subsidies exhibit pro-cyclical characteristics, concentrating significant positive effects on the upper quantiles while leaving the lower tail largely unaffected. Supply-side variables display horizon-dependent sign reversals, with construction permits exerting upward pressure on prices in the short run but moderating them as supply materialises. Uncertainty decomposition reveals persistent left-tail dominance across all horizons. These findings suggest that macroprudential frameworks should account for the distributional effects of housing subsidies, particularly their pro-cyclical influence on house price growth.

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69
references
104
in-text mentions
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distinct cited
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self-citations
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Szendrei, Tibor and Varga, Katalin (2023) Revisiting vulnerable growth in the Euro Area: Identifying the role of financial conditions in the distribution self1.00064100%
2Jordà, Òscar and Schularick, Moritz and Taylor, Alan M (2015) Leveraged bubbles0.92843100%
3Baek, Ingul and Liu, Jia and Noh, Sanha (2024) Real estate uncertainty and financial conditions over the business cycle0.73732100%
4Castelnuovo, Efrem and Mori, Lorenzo (2025) Uncertainty, skewness, and the business cycle through the midas lens0.73732100%
5Diebold, Francis X and Yilmaz, Kamil (2009) Measuring financial asset return and volatility spillovers, with application to global equity markets0.73732100%
6Bondell, Howard D and Reich, Brian J and Wang, Huixia (2010) Noncrossing quantile regression curve estimation0.64441100%
7Adrian, Tobias and Boyarchenko, Nina and Giannone, Domenico (2019) Vulnerable growth0.64422100%
8Cunningham, Christopher R (2006) House price uncertainty, timing of development, and vacant land prices: Evidence for real options in Seattle0.64422100%
9Gruber, Jonathan and Jensen, Amalie and Kleven, Henrik (2021) Do people respond to the mortgage interest deduction? Quasi-experimental evidence from Denmark0.64422100%
10Hartmann, Philipp (2015) Real estate markets and macroprudential policy in Europe0.64422100%

Showing the top 10 of 70 scored citations.