Abstract
The authors have estimated housing supply equation where significant factors proved to be price change on residential property and on installation and construction works. Significance of these variables and expected values testify that the construction companies may adequately react to the market signal. It is worth noting that we rejected a hypothesis that such variables as the share of investments in residential (nonresidential) construction can reflect expected yield on the investment in various building sectors It is possible that this is connected with the fact that in part of the regions the share of investments in certain types of construction at the given stage was exogenous value, for example, due to financing of any large scale projects.
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