Dynamics of Causality between Real Estate and Stock Prices: Evidence from Türkiye
This paper aims to examine the causal relationship between real estate and stock prices in Türkiye over the 2010-2023 period and uncover whether the wealth effect or the credit price effect has been dominant. This study investigates the association between real estate prices and stock prices in Türk...
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| Format: | Article |
| Language: | English |
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Ekonomi ve Finansal Araştırmalar Derneği
2025-03-01
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| Series: | Ekonomi, Politika & Finans Araştırmaları Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/4429391 |
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| _version_ | 1850149874599723008 |
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| author | Evrim Turgutlu Pınar Narin Emirhan |
| author_facet | Evrim Turgutlu Pınar Narin Emirhan |
| author_sort | Evrim Turgutlu |
| collection | DOAJ |
| description | This paper aims to examine the causal relationship between real estate and stock prices in Türkiye over the 2010-2023 period and uncover whether the wealth effect or the credit price effect has been dominant. This study investigates the association between real estate prices and stock prices in Türkiye using both linear and non-linear ARDL cointegration models. A recently developed non-linear ARDL technique by Shin, Yu, and Greenwood-Nimmo (2014) is employed to investigate possible asymmetric relationships between real estate and stock prices. Linear ARDL bounds test results indicate strong evidence of wealth effect for Türkiye. The findings of the non-linear ARDL technique reveal that there is a strong asymmetric association between real estate and stock prices in Türkiye and there is evidence of the existence of both wealth and credit price effects. The asymmetric association is more dominant in the credit price effect model. The findings of the study will help both investors and policymakers to establish effective policies for developing portfolios considering the asymmetric associations and provide a better understanding of the driving forces behind real estate prices. |
| format | Article |
| id | doaj-art-a8708d8aa7cf43539d4c7de5bdd8dd1d |
| institution | OA Journals |
| issn | 2587-151X |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Ekonomi ve Finansal Araştırmalar Derneği |
| record_format | Article |
| series | Ekonomi, Politika & Finans Araştırmaları Dergisi |
| spelling | doaj-art-a8708d8aa7cf43539d4c7de5bdd8dd1d2025-08-20T02:26:45ZengEkonomi ve Finansal Araştırmalar DerneğiEkonomi, Politika & Finans Araştırmaları Dergisi2587-151X2025-03-0110112713910.30784/epfad.1599083957Dynamics of Causality between Real Estate and Stock Prices: Evidence from TürkiyeEvrim Turgutlu0https://orcid.org/0000-0001-5643-3022Pınar Narin Emirhan1https://orcid.org/0000-0002-9879-6005DOKUZ EYLÜL ÜNİVERSİTESİ, İŞLETME FAKÜLTESİDOKUZ EYLÜL ÜNİVERSİTESİ, İŞLETME FAKÜLTESİThis paper aims to examine the causal relationship between real estate and stock prices in Türkiye over the 2010-2023 period and uncover whether the wealth effect or the credit price effect has been dominant. This study investigates the association between real estate prices and stock prices in Türkiye using both linear and non-linear ARDL cointegration models. A recently developed non-linear ARDL technique by Shin, Yu, and Greenwood-Nimmo (2014) is employed to investigate possible asymmetric relationships between real estate and stock prices. Linear ARDL bounds test results indicate strong evidence of wealth effect for Türkiye. The findings of the non-linear ARDL technique reveal that there is a strong asymmetric association between real estate and stock prices in Türkiye and there is evidence of the existence of both wealth and credit price effects. The asymmetric association is more dominant in the credit price effect model. The findings of the study will help both investors and policymakers to establish effective policies for developing portfolios considering the asymmetric associations and provide a better understanding of the driving forces behind real estate prices.https://dergipark.org.tr/tr/download/article-file/4429391real estate pricesstock pricesasymmetric relationshipnonlinear ardl modelsgayrimenkul fiyatlarıhisse senedi fiyatlarıasimetrik i̇lişkidoğrusal olmayan ardl modelleri |
| spellingShingle | Evrim Turgutlu Pınar Narin Emirhan Dynamics of Causality between Real Estate and Stock Prices: Evidence from Türkiye Ekonomi, Politika & Finans Araştırmaları Dergisi real estate prices stock prices asymmetric relationship nonlinear ardl models gayrimenkul fiyatları hisse senedi fiyatları asimetrik i̇lişki doğrusal olmayan ardl modelleri |
| title | Dynamics of Causality between Real Estate and Stock Prices: Evidence from Türkiye |
| title_full | Dynamics of Causality between Real Estate and Stock Prices: Evidence from Türkiye |
| title_fullStr | Dynamics of Causality between Real Estate and Stock Prices: Evidence from Türkiye |
| title_full_unstemmed | Dynamics of Causality between Real Estate and Stock Prices: Evidence from Türkiye |
| title_short | Dynamics of Causality between Real Estate and Stock Prices: Evidence from Türkiye |
| title_sort | dynamics of causality between real estate and stock prices evidence from turkiye |
| topic | real estate prices stock prices asymmetric relationship nonlinear ardl models gayrimenkul fiyatları hisse senedi fiyatları asimetrik i̇lişki doğrusal olmayan ardl modelleri |
| url | https://dergipark.org.tr/tr/download/article-file/4429391 |
| work_keys_str_mv | AT evrimturgutlu dynamicsofcausalitybetweenrealestateandstockpricesevidencefromturkiye AT pınarnarinemirhan dynamicsofcausalitybetweenrealestateandstockpricesevidencefromturkiye |