Investigating the Effect of Liquidity and Per capita Income on the Housing Market (Using a vector auto regression model)

Subject Areas : Journal of Investment Knowledge

shahrzm vahedi ¹ , Farhad Hanifi ² , seyyed jalal sadeghi sharif ³

1 - Student of Financial Management, Department of Management, UAE Branch, Islamic Azad University, Dubai, United Arab Emirates
2 - Assistant Professor, Department of Commerce, Tehran Branch, Islamic Azad University, Tehran, Iran .
3 - Assistant Professor, Department of Financial Management, Shahid Beheshti University, Tehran, Iran.

Received: 2019-07-01 Accepted : 2019-10-22 Published : 2021-12-22

Keywords: liquidity volume, Housing Market, Vector auto regression, Per Capita Income,

Abstract :

AbstractThe housing market has been one of the most volatile sectors of the economy in recent times, experiencing periods of stagnation and boom. It is important to note that the housing sector is most closely linked to other sectors of the economy. With the recession, the whole economy will be in crisis. Also, the housing sector, given these features, has a stronger impact on investment and housing prices than short-term economic fluctuations, as well as its widespread and past relevance to other sectors, has the potential to generate growth and development in other sectors of the economy and can serve as an endogenous growth incentive. To play a slower role, and to stimulate, to stimulate economic growth in the short term and to drive the recession out. Therefore, further reflection is necessary in this section. Therefore, in this study, using the vector auto regression Time Series (VAR) analysis model, we investigate the interaction between housing price markets of some macroeconomic variables such as liquidity volume, per capita income. The results showed that the volume of liquidity has a significant share in the volatility of the housing market. Therefore, policymakers in the economic field should pay more attention to this.

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