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On the Macroeconomic Determinants of the Housing Market in Greece: A VECM Approach

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  • Theodore,Panagiotidis;Panagiotis,Printzis

Abstract

This study examines the role of the housing market in the Greek economy. We review the literature and assess the interdependence between the housing price index and its macroeconomic determinants within a VECM framework. An equilibrium relationship exists and in the long run the retail sector and mortgage loans emerge as the most important variables for housing. The dynamic analysis shows that the mortgage loans followed by retail trade are the variables with the most explanatory power for the variation of the houses price index.

Suggested Citation

  • Theodore,Panagiotidis;Panagiotis,Printzis, 2015. "On the Macroeconomic Determinants of the Housing Market in Greece: A VECM Approach," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 88, Hellenic Observatory, LSE.
  • Handle: RePEc:hel:greese:88
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    Cited by:

    1. Huseyin Karamelikli, 2016. "Linear and nonlinear dynamics of housing price in Turkey," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 46.
    2. Athanasia Chalari & Clive Sealey & Mike Webb, 2016. "A Comparison of Subjective Experiences and Responses to Austerity of UK and Greek Youth," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 102, Hellenic Observatory, LSE.
    3. Jordaan, Jacob A. & Monastiriotis, Vassilis, 2016. "The domestic productivity effects of FDI in Greece: loca(lisa)tion matters!," LSE Research Online Documents on Economics 68816, London School of Economics and Political Science, LSE Library.
    4. Stavros B. Thomadakis, 2015. "Growth, Debt and Sovereignty: Prolegomena to the Greek Crisis," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 91, Hellenic Observatory, LSE.
    5. Yannis Tsirbas & Dimitri Sotiropoulos, 2015. "What Greek political elites think about Europe and the crisis? An exploratory analysis," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 93, Hellenic Observatory, LSE.
    6. Ivan Nikoliæ, 2015. "Price determinants of newly built dwelling in Serbia," Working papers 29, National Bank of Serbia.
    7. Sanghyo Lee & Yonghan Ahn & Sungwoo Shin, 2016. "The Impact of Multinational Business Diversification on the Financial Sustainability of Construction Firms in Korea," Sustainability, MDPI, Open Access Journal, vol. 8(10), pages 1-14, October.
    8. Sara Ferreira Filipe, 2018. "Housing prices and mortgage credit in Luxembourg," BCL working papers 117, Central Bank of Luxembourg.
    9. Monokroussos, Platon & Thomakos, Dimitrios, D. & Alexopoulos, Thomas A., 2016. "The determinants of loan loss provisions:an analysis of the Greek banking systemin light of the sovereign debt crisis," LSE Research Online Documents on Economics 68586, London School of Economics and Political Science, LSE Library.
    10. Rosa VAsilaki, 2016. "Policing the crisis in Greece: The others' side of the story," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 98, Hellenic Observatory, LSE.
    11. Chalari, Athanasia & Sealey, Clive & Webb, Mike, 2016. "A comparison of subjective experiencesand responses to austerity of UK andGreek youth," LSE Research Online Documents on Economics 68585, London School of Economics and Political Science, LSE Library.
    12. Kougias, Konstantinos, 2017. "‘Real’ flexicurity worlds in action: evidence from Denmark and Greece," LSE Research Online Documents on Economics 69576, London School of Economics and Political Science, LSE Library.
    13. Konstantinos Kougias, 2017. "‘Real’ Flexicurity Worlds in action: Evidence from Denmark and Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 106, Hellenic Observatory, LSE.
    14. Vassilis Arapoglou, Kostas Gounis, 2015. "Poverty and Homelessness in Athens: Governance and the Rise of an Emergency Model of Social Crisis Management," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 90, Hellenic Observatory, LSE.

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    Keywords

    Housing Market · Greece · VECM · impulse response function Granger causality;

    JEL classification:

    • N0 - Economic History - - General

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