Bounds Testing Approaches to Housing Demand in Turkey: Is There a Real Estate Bubble?

Ali Osman Solak and Burhan Kabadayi
Additional contact information
Ali Osman Solak: Department of Public Finance, Abant zzet Baysal University, Bolu, Turkey
Burhan Kabadayi: Department of Economics, Erzincan University, Erzincan, Turkey.

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 3, 1132-1135

Abstract: In this study, housing demand in Turkey was examined with bounds testing approaches for the period of 1964-2014. The total square meters of houses sold was taken as housing demand. The explanatory variables of the study are the real price of one square meter of housing, real income level, and urban population. Firstly, stationary properties of the series were checked by unit root tests, then co-integration was investigated. Lastly, we ran the autoregressive lag model process. We found that Turkey is more sensitive to income level and there is positive relationship between prices and housing demand. This might be accounted for by the fact that houses are kinds of investment goods in Turkey

Keywords: Housing Demand; Real Estate Bubble; Bounds Testing Approach (search for similar items in EconPapers)
JEL-codes: D12 D22 J11 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/2231/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/2231/pdf (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:eco:journ1:2016-03-40

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().