The asymmetric effects of economic policies on the housing sector using the dynamic stochastic general equilibrium approach

Document Type : Research Paper

Authors

1 Assistant Professor of Gonbad Kavous University

2 PhD of economics, Tehran University, Tehran, Iran

3 Assistant Professor of Economics, Meybod University, Meybod, Iran

10.30465/jnet.2024.48081.2122

Abstract

Considering the two characteristics of real estate, including consumption and capital characteristics, the total demand of the housing sector can be divided into consumer and investment demand. Different policies can have different effects on each component of housing demand. In this study, using the iran's seasonal data of 1380-1400 and the stochastic dynamic general equilibrium approach, the effects of monetary and financial policy as well as the oil price shock on housing demand were investigated. The results show that investment demand can explain housing price fluctuations better than consumer demand. For example, while expansionary fiscal policy increases both types of consumption and investment demands; Contractionary financial policy causes a decrease in consumer demand and an increase in capital demand for housing. When the economy is booming, the housing market fluctuates. As the fluctuations in the housing market increase, the share of investment in housing increases, and this indicates that housing applicants tend to give more weight to the investment value than the value. Provide consumption that may cause the formation of a housing bubble. In the end, some reasonable policy proposals are presented in the field of price control.

Keywords

Files

History

  • Receive Date: 04 February 2024
  • Revise Date: 10 May 2024
  • Accept Date: 01 June 2024

Share

How to cite

Statistics