Housing Prices and Macroeconomic Factors in Greece: Prospects within the EMU

Posted: 23 Jun 2008

See all articles by Nicholas Apergis

Nicholas Apergis

University of Piraeus; University of Derby

Anthony N. Rezitis

affiliation not provided to SSRN

Date Written: June, 23 2008


This article analyses the dynamic effects of specific macroeconomic variables, for example housing loan rates, inflation, employment and money supply, on the price of new houses sold in Greece. An error correction vector autoregressive (ECVAR) model is used in modelling the impact of the above macroeconomic variables on housing price. The results obtained through impulse response functions suggest that housing prices respond to all macroeconomic variables under consideration. Variance decompositions show that the housing loan rate is the variable with the highest explanatory power over the variation of housing price, followed by inflation and employment, while money supply does not seem to show any substantial impact.

Suggested Citation

Apergis, Nicholas and Rezitis, Anthony N., Housing Prices and Macroeconomic Factors in Greece: Prospects within the EMU (June, 23 2008). Applied Economics Letters, Vol. 10, No. 9, 2003. Available at SSRN: https://ssrn.com/abstract=1150163

Nicholas Apergis

University of Piraeus ( email )

Karaoli and Dimitriou 80
Piraeus, Attiki 18534

University of Derby ( email )

Kedleston Road
Derby, Derbyshire DE22 1GB
United Kingdom

Anthony N. Rezitis (Contact Author)

affiliation not provided to SSRN

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