Aslı AFSAR, Emrah DOGAN

289

ANALYZING ASSET OF BUBBLES IN THE HOUSING MARKET WITH RIGHT-TAILED UNIT ROOT TESTS: THE CASE OF TURKEY

Purpose- Housing markets are linked to macroeconomic and financial stability. The creation of different financial instruments on residence, the presentation of residence as an assurance, the impact of residence prices on saving and consumption through the wealth effect are some of the housing market and general economic interactions. Developments in the residential sector must be carefully monitored for financial stability. The residential sector has usually played an important role in the global economy and financial sector bubbles. It has been observed that the wealth effect created by the housing bubble surpasses the effect of the stock bubble and that the housing bubble explosion causes more economic devastation compared to the other assets bubbles. While housing markets are increasingly buried in financial markets, the connections between them have strengthened. Such a situation can cause financial crises as a way of extinguishment of a housing bubble. In the case of housing bubbles, bank balance sheets are generally more affected by real estate and it is more likely that the decline in real estate prices are transmitted to the other sectors of the economy with the credit channel. When the housing price bubble burst, the collapse in the financial system is also reflected in the real sector. In this study, with reference to the real housing price index and the real rent price index, it has been investigated whether there is the housing bubble in Turkey.
Keywords:

The housing bubble, Turkey SADF, GSADF,

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Journal of Business Economics and Finance-Cover
  • Yayın Aralığı: Yılda 4 Sayı
  • Başlangıç: 2012
  • Yayıncı: PressAcademia
Arşiv
Sayıdaki Diğer Makaleler

Omer ONALAN, Hulya BASEGMEZ

H. Huseyin YİLDİRİM, M. Emin AKKİLİC, M. Selim DİKİCİ

Tsung-chun CHEN, Hsiao-min CHEN, Shiann-ming WU, Xiao-xuan CHEN

Aslı AFSAR, Emrah DOGAN

Khamis M. BİLBEİSİ, C. R. NARAYANASWAMY, Chau DİNH

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