"The Impact of Macroeconomic Factors on the Change of Residential Prices" The case study of Albania
Journal Title: International Journal of Applied Research in Management and Economics - Year 2023, Vol 5, Issue 4
Abstract
The housing market is a very important sector worldwide and occupies a significant part of their capital stock. Given that the economy is experiencing a difficult situation, because of the Covid-19 pandemic crisis, also based on the financial crisis of 2007-2008, their impact has been immediate in the change in house prices. Moreover, this paper will contain the investigation of some of the macroeconomic variables that affect housing prices in Albania. The study is built on econometric models, using bound test to understand what correlation relationship exists between GDP, inflation and mortgage rate and evaluating the "Autoregressive Distributive Lags" model in the short-term period, as well as looking at the perspective of a long-term period according to the "Vector Error Correction" (VEC) model. From the result obtained from E-views software, it is shown that depending on the time periods, the impact of these macro variables is different. If in the short term it seems that the impact of the mortgage rate is not a very substantial variable or inflation can have a negative impact, in long-terms is the opposite. To have a model that is as reliable and strong as possible, "battery" tests have also been analyzed to diagnose its constituent elements such as heteroskedasticity, autocorrelation, normality and the CUSUM / CUSUM square test for stability of the model. This paper applies to all areas, whose political implications can be found mainly for the bank, various investors or even policy makers, which may be the Bank of Albania, which should pursue policies to stimulate economic growth and show caution in the level of inflation created or setting the mortgage threshold.
Authors and Affiliations
Fationa Halili,
Keywords
Related Articles
- EP ID EP745376
- DOI https://doi.org/10.33422/ijarme.v5i4.946
- Views 37
- Downloads 0
Does Corporate Social Responsibility Spending Enhancing the Financial Performance?
This paper examines the dynamic relationship between financial performance FP and corporate social responsibility spending CSRS in Jordan. The dynamic panel system GMM measurement was utilized for 164 listed companies in...
Integration of sustainability aspects in the supplier selection process: a case study from a German electronics firm
The supplier selection process has become an important area of research and professional activity, and it is fundamental to understand the types and trends of research in this field. The appropriate supplier selection de...
Effect of Internet Services on Customer’s Online Purchase Intention (Case Study: Behpahksh Pharmaceutical Company)
This study aimed at examining the effect of internet services on online purchase intention of customers in Behpakhsh Company. Variables of this study included transaction services, pre-purchase services, Navigation exper...
Determinants of Post-Tax Audit Compliance in Ghana
Governments derive a significant portion of their income from taxation. Collection of tax is however impeded by tax non-compliant activities as well as tax evasion. This necessitates measures to ensure tax compliance, su...
Digital Transformation in Property Development and the Role of Change Management: Structured Literature Review and Future Trends
Digital transformation affects all areas of business. Some industries are pioneers, whilst others lag behind in implementing digital solutions. The property development business as a traditional business is often neglect...