Identification Of Harmonic Models Based On Fourier Transforms As A Tool For Parameterization Of The Dwelling Construction Market

Abstract :

The research reported in this paper explores the applicability of harmonic models based on Fourier transforms for the purposes of parameterization of the dwelling construction market. Throughout the present study, the structural parameters of a single, dual and triple harmonic models were evaluated, the last of which was found to demonstrate the best degree of empirical data fit. The resulting models provide a manner in which the identification of phenomena occurring in this market can be performed effectively in terms of the results for number of building permits issued, number of dwellings under construction and the number of new dwellings completed. The adequate determination of the phenomena in the housing market can help reduce the information gap, thus minimizing the likelihood of a failure during housing investments. Such decision-making mistakes apply with regard to both the development of the finance and macro-precautionary principle on the macroeconomic scale of the nation–state, as well as investors operating on the housing market.