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Investigation Ofrelationshipbetween House Prices And Macroeconomic Variables In Turkey


  • ‹lkay Oner Bodurlar

    () (Anadolu University)


This study analyses the dynamic effects of macroeconomic variables (i.e. gross domestic product (GDP), money supply, short-run interest rates and exchange rates) on the house prices in Turkey for the period 2000-2006. Estimates of the long run relationship between house prices and macroeconomic variables are obtained using the Johansen cointegration test. The results of cointegration analysis suggest that there exists a long run relationship between house prices and macroeconomic variables. Vector Error Correction Model (VECM) is used to investigate of the short-run dynamic relationship between house prices and macroeconomic variables. The results of VEC Granger Causality/Block Exogeneity Wald Test show that thereis bi-directional causality between house prices and interest rates and exchange rates. It is observed that one-directional causality exists from gross domestic product and money supply to house prices.

Suggested Citation

  • ‹lkay Oner Bodurlar, 2008. "Investigation Ofrelationshipbetween House Prices And Macroeconomic Variables In Turkey," Anadolu University Journal of Social Sciences, Anadolu University, vol. 8(1), pages 223-238, June.
  • Handle: RePEc:and:journl:v:8:y:2008:i:1:p:223-238

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    References listed on IDEAS

    1. Sharma, Arun & Stafford, Thomas F., 2000. "The Effect of Retail Atmospherics on Customers' Perceptions of Salespeople and Customer Persuasion:: An Empirical Investigation," Journal of Business Research, Elsevier, vol. 49(2), pages 183-191, August.
    2. David R. Bell & James M. Lattin, 1998. "Shopping Behavior and Consumer Preference for Store Price Format: Why “Large Basket” Shoppers Prefer EDLP," Marketing Science, INFORMS, pages 66-88.
    3. Belk, Russell W, 1975. " Situational Variables and Consumer Behavior," Journal of Consumer Research, Oxford University Press, vol. 2(3), pages 157-164, December.
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    More about this item


    House prices; Macroeconomic variables; Causality relation; VECM;

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other


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