Spatio-Temporal Diffusion of Housing Prices in Iran (in Persian)

Solaleh Tavassoli () and Nasser Khiabani
Additional contact information
Solaleh Tavassoli: Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran
Nasser Khiabani: Department of Economics, Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran.

The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه), 2023, vol. 28, issue 3, 3-42

Abstract: To understand the behavior of housing prices in the country it is necessary to investigate the spatial interactions of interconnected regional markets. The discussion on housing prices highlights the potential spatial heterogeneity and cross-sectional dependence in different regions. It is important to pay attention to the source of cross-sectional dependencies to better understand the dynamics of housing prices in different regions. Cross-sectional dependence can be caused either by the role of space in economic processes or by common shocks that affect the entire economy, such as the oil shock. Using a spatio-temporal housing price diffusion model, the study found that the Tehran region, as the center of economic development and oil revenues, was a dominant region, and that shocks to Tehran were propagated contemporaneously and spatially to other regions. The results show that in modeling the spatial diffusion of housing prices, financial proximity is more important than geographic proximity, and regions with stronger financial links with Tehran will be most affected by shocks to this region in the long run.

Keywords: Spatio-temporal Diffusion; Housing Prices; Dominant Unit; Regional Housing Markets; Dynamic Structural Vector Error Correction Models. (search for similar items in EconPapers)
JEL-codes: C32 O18 R31 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://jpbud.ir/article-1-2224-en.pdf (application/pdf)
http://jpbud.ir/article-1-2224-en.html (text/html)
http://jpbud.ir/article-1-2224-fa.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:auv:jipbud:v:28:y:2023:i:3:p:3-42

Access Statistics for this article

More articles in The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه) from Institute for Management and Planning studies Contact information at EDIRC.
Bibliographic data for series maintained by Nahid Jebeli ( this e-mail address is bad, please contact ).