Extract
Housing prices and the macroeconomy: evidence from a panel of European Mediterranean countries: a note.
NICHOLAS APERGIS
Department of Financial and Banking Management University of Piraeus, Piraeus 18534, Greece Abstract This study analyses the dynamic effects of specific macroeconomic variables on the price of new houses sold in a panel of European Mediterranean countries, i.e. Spain, France, Italy, Portugal, and Greece. A panel data approach is employed, while an error correction vector autoregressive (ECVAR) model is used in modelling the impact of the macroeconomic variables on real housing prices. Variance decompositions show that the housing loan rate is the variable with the highest explanatory power over the variation of real housing prices, followed by employment. JEL Classification System: G24; E20; E40; E50 Keywords: Housing prices; macroeconomic factors; panel data; Mediterranean countries I. INTRODUCTION Over the past few years the world real estate industry is undergoing drastic reforms due to the liberalization of financial markets, the drastic fall of interest rates, the ob...See the full content of this document
Sponsored links
