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The demand for new housing in Turkey: an application of ARDL model

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  • Ferda Halicioglu

Abstract

This study provides empirical estimates for new residential homes demand function in Turkey using the time series data for the period 1964–2004. An aggregate demand function for new private dwellings in Turkey is formed and is estimated using bounds testing cointegration procedure proposed by Pesaran et al. (2001) to compute the short and long-run elasticities of income and price variables. This study also implements Cumulative Sum (CUSUM) and Cumulative Sum of the Squares (CUSUMSQ) stability tests on the estimated new housing demand function. The empirical results indicate that income is the most significant variable in explaining the demand for new housing in Turkey and there exists a relatively stable new housing demand function.

Suggested Citation

  • Ferda Halicioglu, 2007. "The demand for new housing in Turkey: an application of ARDL model," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 9(1), pages 62-74.
    • Handle: RePEc:ids:gbusec:v:9:y:2007:i:1:p:62-74
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    Cited by:

    1. Olusegun A. Omisakin & Oluwatosin A. Adeniyi & Abimbola M. Oyinlola, 2012. "Structural Breaks, Parameter Stability and Energy Demand Modeling in Nigeria," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 5(2), pages 129-144, August.
    2. Hussain Mohammed A. Al Obaid, 2020. "Factors Determining Housing Demand in Saudi Arabia," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 150-157.
    3. Kurtovic Safet & Halili Blerim & Maxhuni Nehat, 2017. "Bilateral Trade Elasticity of Serbia and Her Trading Partners," Review of Economics, De Gruyter, vol. 68(3), pages 181-204, December.
    4. Coskun, Yener, 2010. "An Analysis of the Strenghts and Weaknesses of the Turkish Real Estate Market," MPRA Paper 28361, University Library of Munich, Germany.
    5. Fontenla, Matas & Gonzalez, Fidel, 2009. "Housing demand in Mexico," Journal of Housing Economics, Elsevier, vol. 18(1), pages 1-12, March.
    6. Ferda Halicioglu, 2013. "Dynamics of obesity in Finland," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 40(5), pages 644-657, October.
    7. Ferda Halıcıoğlu & Kasım Eren, 2017. "Testing Twin Deficits and Saving-Investment Nexus in Turkey," Yildiz Social Science Review, Yildiz Technical University, vol. 3(1), pages 35-46.
    8. Kurtović Safet & Halili Blerim & Maxhuni Nehat, 2017. "Effect of Depreciation of the Exchange Rate on the Trade Balance of Albania," Naše gospodarstvo/Our economy, Sciendo, vol. 63(3), pages 27-36, September.
    9. Reza Najarzadeh & Amene Shahidi, 2015. "Modeling Housing Demand for New Residential Buildings in Urban Areas," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 19(2), pages 165-176, Spring.
    10. Abuzer Pinar & Murat Demir, 2016. "The Impact of Social Housing Program on the Demand for Housing in Turkey: A Cross-Section Analysis," Applied Economics and Finance, Redfame publishing, vol. 3(4), pages 20-28, November.

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