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A regime-dependent investigation of the impact of macroeconomic variables on the housing market activity in Turkey

Author

Listed:
  • Utku Akseki

    (Ege University)

  • Abdurrahman Nazif Çatık

    (Ege University)

  • Barış Gök

    (Ege University)

Abstract

This paper investigates the impact of macroeconomic variables on the housing market activity in Turkey covering the period from January 1992 to December 2012. To this aim regime-dependent impulse response and forecast error decomposition analysis are conducted based on a two-regime MS-VAR model. We find that M1 and interbank rate account considerable parts of the variation in the housing permits when the economy is in the stable regime. The results suggest that Central Bank might control the housing activity through the use of monetary policy variables.

Suggested Citation

  • Utku Akseki & Abdurrahman Nazif Çatık & Barış Gök, 2014. "A regime-dependent investigation of the impact of macroeconomic variables on the housing market activity in Turkey," Economics Bulletin, AccessEcon, vol. 34(2), pages 1081-1090.
  • Handle: RePEc:ebl:ecbull:eb-13-00749
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Housing market; economic activity; monetary policy; Turkey.;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates

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