Modeling Housing Demand for New Residential Buildings in Urban Areas
Reza Najarzadeh () and
Amene Shahidi ()
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Reza Najarzadeh: Department of Economics, Tarbiat Modares University, Iran.
Amene Shahidi: Department of Economics, Tarbiat Modares University, Iran.
Iranian Economic Review (IER), 2015, vol. 19, issue 2, 165-176
Abstract:
This study investigates the factors affecting the demand for new residential buildings in urban areas of Iran during 1976-2010. The demand function for new residential buildings in urban areas was estimated and then the existence of a long-run relationship among variables of this function was studied using the Bounds testing of the Autoregressive Distributed Lag Co-integration procedure. The test confirmed a long-run relationship among the variables, so the coefficients of the short-term and long-term demand for new residential buildings were estimated. The results show that the average income of urban households has the biggest impact on the long-term demand of new residential buildings and its sign is positive. In the short-term, the biggest impact on the demand for new residential buildings is the average cost of constructing a residential building, with a negative impact on the demand.
Keywords: ARDL Co-integration techniques; Bounds Test; Demand for New Residential Buildings. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:eut:journl:v:19:y:2015:i:2:p:165
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