considering the Relationship between the Housing Sector and Some Macroeconomic Variables of Iran: The Wavelet Coherency Approach

Document Type : Original Article

Authors

Assistant Professor in Economics, Department of Economics, University of Ayatollah Boroujerdi

Abstract

The purpose of this paper is to consider the relationship between housing indexes with some Iran's macroeconomic variables by wavelet coherency approach between1992-2015. The results of wavelet coherency have shown that the relationship between housing price index and economic growth has been inverted in one-year time-frequency during the period 2012-2014 but in this frequency between2006-2010, this relationship has been the identical phase, and the housing price index causes economic growth. Furthermore, the intensity of the relationship between economic growth and land price index in the short-term horizon during 1993-1996 has been in the opposite phase but during 2001-2004 are co-movement. On the other hand, inflation and housing price index are co-movement and in short and medium term; inflation rate was the leading variable. As well as liquidity and price indices of the housing sector are co-movement in long-term.

Keywords

Journal of Econometric Modelling
Volume 2, Issue 4 - Serial Number 7
September 2018
Pages 85-106

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