%0 Journal Article %T Analyzing the Relation between Bank Deposit Rates and House Prices in Iran %J Journal of Economic Research (Tahghighat- E- Eghtesadi) %I University of Tehran %Z 0039-8969 %A Heydari, Hassan %A Soori, Amir Reza %D 2010 %\ 10/23/2010 %V 45 %N 3 %P - %! Analyzing the Relation between Bank Deposit Rates and House Prices in Iran %K Bank Deposit Rates %K House Prices %K Housing %K Iran %K Vector Autoregressive Model (VAR) %R %X We have studied the relation between bank deposit rates and house prices in Iran. For that, we have run some VAR models, using the following variables: real deposit rates (including 1 and 5 years deposit rates), money supply (including the high powered money and the liquidity), GDP, housing services index, and number of licenses for new houses. Our results show that a reduction in the deposit rates reduces its attraction and increases demand for housing as an alternative asset to stock wealth. In other word, we find that there is a negative relation between bank deposit rates and house prices. JEL classification: E43, G12, R21, R31 %U https://jte.ut.ac.ir/article_21370_9c2a7f0835487dc84b336c0cf6b95e58.pdf