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A Study of House Price Determinants in Iran, Using Panel Data
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Seyed Mansour Khalili Araghi *   , Mohsen Mehrara , Seyed Reza Azimi |
| University of Tehran , khalili@ut.ac.ir |
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Abstract: (11580 Views) |
| This paper models the impact of supply and demand sides on real prices of housing in Iran. Household expenditure, number of households, user cost (housing ownership cost), bank loan, land price and construction cost are included in the model. Given the advantages of panel data, this paper uses unbalanced data of urban areas of 30 provinces of Iran during 1991- 2010. To segregate the impacts of the variables in time horizon, with regard to an Error Correction Model, the functions are estimated in short-run and long-run by the Dynamic Ordinary Least Squares (DOLS) method. Results indicate that both in the long-run and short-run, household expenditure, bank loan and land price had positive effects and ownership cost had adverse effects on real house prices. In addition, in the short-run, the lagged house prices produced positive effects on the current real house prices. |
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| Keywords: House Price, House Supply, House Demand, Panel Data, Error Correction Model |
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Full-Text [PDF 392 kb]
(17070 Downloads)
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Type of Study: Research |
Subject:
Special
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