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Bounds Testing Approaches to Housing Demand in Turkey: Is There a Real Estate Bubble?

Author

Listed:
  • Ali Osman Solak

    (Department of Public Finance, Abant zzet Baysal University, Bolu, Turkey)

  • Burhan Kabadayi

    (Department of Economics, Erzincan University, Erzincan, Turkey.)

Abstract

In this study, housing demand in Turkey was examined with bounds testing approaches for the period of 1964-2014. The total square meters of houses sold was taken as housing demand. The explanatory variables of the study are the real price of one square meter of housing, real income level, and urban population. Firstly, stationary properties of the series were checked by unit root tests, then co-integration was investigated. Lastly, we ran the autoregressive lag model process. We found that Turkey is more sensitive to income level and there is positive relationship between prices and housing demand. This might be accounted for by the fact that houses are kinds of investment goods in Turkey

Suggested Citation

  • Ali Osman Solak & Burhan Kabadayi, 2016. "Bounds Testing Approaches to Housing Demand in Turkey: Is There a Real Estate Bubble?," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 1132-1135.
    • Handle: RePEc:eco:journ1:2016-03-40
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    References listed on IDEAS

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    Cited by:

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    2. Arif Igdeli, 2020. "A Spatial Econometric Analysis on the Determinants of Regional Housing Demand," Bingol University Journal of Economics and Administrative Sciences, Bingol University, Faculty of Economics and Administrative Sciences, vol. 4(2), pages 145-165, December.

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    More about this item

    Keywords

    Housing Demand; Real Estate Bubble; Bounds Testing Approach;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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