The Spatial and Temporal Diffusion of House Prices in Tehran’s Municipality Zones<br/>

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The Spatial and Temporal Diffusion of House Prices in Tehran’s Municipality Zones

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 46454 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Barakchian, Mehdi; Fatemi Ardestani, Farshad
Abstract:
The spatial diffusion of house prices has been the subject of research for many years. Most of these studies have found a strong relationship between neighboring regions and a weaker relation between nonneighbors. This study uses changes in real house prices within Tehran at the level of municipality zones to illustrate the ripple effect by using quarterly house price data of Tehran’s twenty municipality zones since 1371 to 1391. It also aims to illustrate the heterogeneity in spatial spillovers of house prices development across space and time. We found that a positive shock in house prices diffuse more rapidly that a negative shock; the time shock will diffuse also have a heavier level effect. This is interpreted as evidence for the disposition effect.
It is shown that in zone one of municipality of Tehran, house prices have a direct effect on other zones house prices. But the Panel Smooth Transition Regression Model (PSTR) could not support enough evidence for heterogeneity in spatial spillovers of house price developments between Tehran’s zones
Keywords:
Housing Price ; Vector Error Correction Model ; Spatial Dependence ; Cross Section Dependence

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