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
Heydari,H and Soori,A R . (2010). Analyzing the Relation between Bank Deposit Rates and House Prices in Iran. (e21370). Journal of Economic Research (Tahghighat- E- Eghtesadi), 45(3), e21370
MLA
Heydari,H , and Soori,A R . "Analyzing the Relation between Bank Deposit Rates and House Prices in Iran" .e21370 , Journal of Economic Research (Tahghighat- E- Eghtesadi), 45, 3, 2010, e21370.
HARVARD
Heydari H, Soori A R. (2010). 'Analyzing the Relation between Bank Deposit Rates and House Prices in Iran', Journal of Economic Research (Tahghighat- E- Eghtesadi), 45(3), e21370.
CHICAGO
H Heydari and A R Soori, "Analyzing the Relation between Bank Deposit Rates and House Prices in Iran," Journal of Economic Research (Tahghighat- E- Eghtesadi), 45 3 (2010): e21370,
VANCOUVER
Heydari H, Soori A R. Analyzing the Relation between Bank Deposit Rates and House Prices in Iran. J. Econ. Res.. 2010;45(3):e21370 (In Persian).
