Housing Market Activity and Macroeconomic Variables: An Analysis of Turkish Dwelling Market under New Mortgage System

Ali Hepsen, Nazli Kalfa Bas
1.142 618

Abstract


The primary purpose of this paper is to examine dynamic causal relationships between housing market activity (construction permits for private use) and six determinants, including consumer price index (CPI), monetary aggregate (M2), interest rate (IR), industrial production index (IPI), real estate investment trusts' indices (REITIX) and volume of mortgage loans (ML), in Turkish dwelling market under new mortgage system. Granger causality tests, impulse response functions and variance decomposition models are utilized for the period 2002 to 2007.


Keywords


Housing Investment; Granger Causality Tests, Variance Decomposition Models

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