Investigating the convergence of housing prices in Iranian cities (spatial dynamic panel approach)
Economically, housing is a commodity with special characteristics that distinguish it from other commodities and complicate its market analysis (supply and demand). Housing price fluctuations have a very important effect on the national and regional economy. Fluctuations may potentially affect migra...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
Natural Disasters Research Institute
2022-12-01
|
| Series: | مسکن و محیط روستا |
| Subjects: | |
| Online Access: | http://jhre.ir/article-1-2256-en.pdf |
| _version_ | 1826988046551089152 |
|---|---|
| author | parvin alimoradi afshar lila gholami hedariany |
| author_facet | parvin alimoradi afshar lila gholami hedariany |
| author_sort | parvin alimoradi afshar |
| collection | DOAJ |
| description | Economically, housing is a commodity with special characteristics that distinguish it from other commodities and complicate its market analysis (supply and demand). Housing price fluctuations have a very important effect on the national and regional economy. Fluctuations may potentially affect migration and capital mobility between regions. Investigating the long-term equilibrium relationship between housing prices in all regions of the country can answer the question of whether housing prices in all regions will converge or not. This research examines the convergence of housing prices from spatial econometric methods and dynamic panel data among Iranian cities. For this purpose, the housing prices of 31 Iranian cities from 1379 to 1397 are examined. This study is based on the theory that housing price shocks in one region can have a ripple effect on other regions due to migration, asset conversion and spatial arbitrage. If this hypothesis is acceptable, the relative price ratios of the regions should be stable. Although there may be a difference in the short term, it should converge in the long term. Therefore, when a housing price shock hits one of Iran's cities, due to the ripple effect of this shock, it affects the housing prices of other cities, and finally, the housing prices of all cities converge in the long term. In such a case, considering that regional planning policies have the same long-term effects for all regions, macroeconomic policy makers cannot independently control the housing prices of a region. However, planning policies are still effective on the short-term path of prices. The results show that there is a convergence of housing prices between cities in Iran. Moreover, the spatial effects are influential in the convergence of housing prices in cities, and the result confirms the hypothesis of a wave effect in the convergence of housing prices in regions. In such a case, regional planning policies will have the same long-term effects for all regions. |
| first_indexed | 2025-02-18T07:46:29Z |
| format | Article |
| id | doaj.art-a7949d47d7964f40bbf0badd7a8d64ac |
| institution | Directory Open Access Journal |
| issn | 2008-4994 2588-6215 |
| language | fas |
| last_indexed | 2025-02-18T07:46:29Z |
| publishDate | 2022-12-01 |
| publisher | Natural Disasters Research Institute |
| record_format | Article |
| series | مسکن و محیط روستا |
| spelling | doaj.art-a7949d47d7964f40bbf0badd7a8d64ac2024-11-05T14:29:15ZfasNatural Disasters Research Instituteمسکن و محیط روستا2008-49942588-62152022-12-01411804356Investigating the convergence of housing prices in Iranian cities (spatial dynamic panel approach)parvin alimoradi afshar0lila gholami hedariany1 Faculty of Humanities, University of Kurdistan, Kurdistan, Iran in economics from Tabriz University Economically, housing is a commodity with special characteristics that distinguish it from other commodities and complicate its market analysis (supply and demand). Housing price fluctuations have a very important effect on the national and regional economy. Fluctuations may potentially affect migration and capital mobility between regions. Investigating the long-term equilibrium relationship between housing prices in all regions of the country can answer the question of whether housing prices in all regions will converge or not. This research examines the convergence of housing prices from spatial econometric methods and dynamic panel data among Iranian cities. For this purpose, the housing prices of 31 Iranian cities from 1379 to 1397 are examined. This study is based on the theory that housing price shocks in one region can have a ripple effect on other regions due to migration, asset conversion and spatial arbitrage. If this hypothesis is acceptable, the relative price ratios of the regions should be stable. Although there may be a difference in the short term, it should converge in the long term. Therefore, when a housing price shock hits one of Iran's cities, due to the ripple effect of this shock, it affects the housing prices of other cities, and finally, the housing prices of all cities converge in the long term. In such a case, considering that regional planning policies have the same long-term effects for all regions, macroeconomic policy makers cannot independently control the housing prices of a region. However, planning policies are still effective on the short-term path of prices. The results show that there is a convergence of housing prices between cities in Iran. Moreover, the spatial effects are influential in the convergence of housing prices in cities, and the result confirms the hypothesis of a wave effect in the convergence of housing prices in regions. In such a case, regional planning policies will have the same long-term effects for all regions.http://jhre.ir/article-1-2256-en.pdfripple effect hypothesisconvergenceregional housing pricesspatial dynamic panel |
| spellingShingle | parvin alimoradi afshar lila gholami hedariany Investigating the convergence of housing prices in Iranian cities (spatial dynamic panel approach) مسکن و محیط روستا ripple effect hypothesis convergence regional housing prices spatial dynamic panel |
| title | Investigating the convergence of housing prices in Iranian cities (spatial dynamic panel approach) |
| title_full | Investigating the convergence of housing prices in Iranian cities (spatial dynamic panel approach) |
| title_fullStr | Investigating the convergence of housing prices in Iranian cities (spatial dynamic panel approach) |
| title_full_unstemmed | Investigating the convergence of housing prices in Iranian cities (spatial dynamic panel approach) |
| title_short | Investigating the convergence of housing prices in Iranian cities (spatial dynamic panel approach) |
| title_sort | investigating the convergence of housing prices in iranian cities spatial dynamic panel approach |
| topic | ripple effect hypothesis convergence regional housing prices spatial dynamic panel |
| url | http://jhre.ir/article-1-2256-en.pdf |
| work_keys_str_mv | AT parvinalimoradiafshar investigatingtheconvergenceofhousingpricesiniraniancitiesspatialdynamicpanelapproach AT lilagholamihedariany investigatingtheconvergenceofhousingpricesiniraniancitiesspatialdynamicpanelapproach |