Authors
1 Professor of Economics, Mazandaran University
2 Assistant Professor of Economics, Mazandaran University
3 Ph.D Student in Economics
Abstract
The purpose of this paper is to investigate the effect of some macroeconomic variables on house price index. We apply a macroeconomic model with micro foundations that uses household income, stock price index, building service price index, housing completions, supply of money, and inflation to explain the changes in house price index. We use the ARDL and the ECM model with the seasonal data for the period 1995-2006 to estimate the speed of convergence to equilibrium. Our findings indicate that the macroeconomic variables can explain the changes in the house price index in Iran, and the sign of estimated coefficients confirm the hypothesis.
Keywords
)