The Interaction of Housing Price and Credit: Some Evidence from Iran
Housing price swings have always been under the spotlight for policy-makers and academics. Financial accelerator mechanism (developed by Bernanke and Gertler, 1999) can provide some explanation to these fluctuations. With focusing on the concept of financial accelerator, this paper sheds light on th...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2018-12-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Subjects: | |
| Online Access: | https://joer.atu.ac.ir/article_9828_946c898988d5d181c179a2887e93d5cf.pdf |
| _version_ | 1797375647889227776 |
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| author | Naser Khiabani shaghayegh shajari |
| author_facet | Naser Khiabani shaghayegh shajari |
| author_sort | Naser Khiabani |
| collection | DOAJ |
| description | Housing price swings have always been under the spotlight for policy-makers and academics. Financial accelerator mechanism (developed by Bernanke and Gertler, 1999) can provide some explanation to these fluctuations. With focusing on the concept of financial accelerator, this paper sheds light on the long- and short-run correlation of housing prices and credit in Iran. We applied a Structural Vector Error Correction Model (SVECM) to housing and credit market over period 1988q2-2015q1. Our findings confirm the existence of a cointegrated relationship between credit and housing prices. In a long-run perspective, the causation goes from credit to housing prices. However, in the short-run we find an existence of contemporaneous bi-directional dependence between housing prices and credit. In general, we find the evidence of housing collateral effect in housing and credit markets in Iran. However, this role is small and limited compared to the same role in countries with developed financial and mortgage markets. |
| first_indexed | 2024-03-08T19:27:26Z |
| format | Article |
| id | doaj.art-508aec14545445658f819e97bface38d |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:27:26Z |
| publishDate | 2018-12-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-508aec14545445658f819e97bface38d2023-12-26T08:03:10ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532018-12-011871215210.22054/joer.2018.98289828The Interaction of Housing Price and Credit: Some Evidence from IranNaser Khiabani0shaghayegh shajari1Associate Professor, Faculty of Economics, Allameh Tabataba'i University, TehranPh.D. Candidate in Financial Economics, Faculty of Economics, Allameh Tabataba'i University, TehranHousing price swings have always been under the spotlight for policy-makers and academics. Financial accelerator mechanism (developed by Bernanke and Gertler, 1999) can provide some explanation to these fluctuations. With focusing on the concept of financial accelerator, this paper sheds light on the long- and short-run correlation of housing prices and credit in Iran. We applied a Structural Vector Error Correction Model (SVECM) to housing and credit market over period 1988q2-2015q1. Our findings confirm the existence of a cointegrated relationship between credit and housing prices. In a long-run perspective, the causation goes from credit to housing prices. However, in the short-run we find an existence of contemporaneous bi-directional dependence between housing prices and credit. In general, we find the evidence of housing collateral effect in housing and credit markets in Iran. However, this role is small and limited compared to the same role in countries with developed financial and mortgage markets.https://joer.atu.ac.ir/article_9828_946c898988d5d181c179a2887e93d5cf.pdfhousing pricesstructural vector auto regressive modelcreditcollateral effectfinancial accelerator |
| spellingShingle | Naser Khiabani shaghayegh shajari The Interaction of Housing Price and Credit: Some Evidence from Iran Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī housing prices structural vector auto regressive model credit collateral effect financial accelerator |
| title | The Interaction of Housing Price and Credit: Some Evidence from Iran |
| title_full | The Interaction of Housing Price and Credit: Some Evidence from Iran |
| title_fullStr | The Interaction of Housing Price and Credit: Some Evidence from Iran |
| title_full_unstemmed | The Interaction of Housing Price and Credit: Some Evidence from Iran |
| title_short | The Interaction of Housing Price and Credit: Some Evidence from Iran |
| title_sort | interaction of housing price and credit some evidence from iran |
| topic | housing prices structural vector auto regressive model credit collateral effect financial accelerator |
| url | https://joer.atu.ac.ir/article_9828_946c898988d5d181c179a2887e93d5cf.pdf |
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