The dynamic effect of macroeconomic factors on housing prices: Evidence from South Africa

dc.contributor.advisorNdlovu, Godfrey
dc.contributor.authorLekhuleni, Thami Innocent
dc.date.accessioned2022-03-04T07:31:19Z
dc.date.available2022-03-04T07:31:19Z
dc.date.issued2021
dc.date.updated2022-03-02T08:40:57Z
dc.description.abstractThis study examines the dynamic short- and long-run causal relationship between South African real house prices and macroeconomic fundamentals (gross domestic product, mortgage rate, exchange rate-USDZAR, affordability, household debt to disposable income, unemployment rate, share prices (JSE ALL share index), foreign direct investment, and producer price index) over the 2000Q1-2019Q4 period. The study utilizes a vector error correction model (VECM) to estimate the short- and long-run causal relationships while accounting for endogeneity and reverse causality. The results suggest the existence of a significant short-run and long-run association between house prices and macroeconomic fundamental variables under review. More specifically, the empirical results presented reveal that the gross domestic product and producer price index had the most impact on house prices compared to all other variables. Furthermore, any disequilibrium of house prices from its fundamental determinants in the short-run always self-corrects in the long run.
dc.identifier.apacitationLekhuleni, T. I. (2021). <i>The dynamic effect of macroeconomic factors on housing prices: Evidence from South Africa</i>. (). ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/35892en_ZA
dc.identifier.chicagocitationLekhuleni, Thami Innocent. <i>"The dynamic effect of macroeconomic factors on housing prices: Evidence from South Africa."</i> ., ,Faculty of Commerce ,School of Economics, 2021. http://hdl.handle.net/11427/35892en_ZA
dc.identifier.citationLekhuleni, T.I. 2021. The dynamic effect of macroeconomic factors on housing prices: Evidence from South Africa. . ,Faculty of Commerce ,School of Economics. http://hdl.handle.net/11427/35892en_ZA
dc.identifier.ris TY - Master Thesis AU - Lekhuleni, Thami Innocent AB - This study examines the dynamic short- and long-run causal relationship between South African real house prices and macroeconomic fundamentals (gross domestic product, mortgage rate, exchange rate-USDZAR, affordability, household debt to disposable income, unemployment rate, share prices (JSE ALL share index), foreign direct investment, and producer price index) over the 2000Q1-2019Q4 period. The study utilizes a vector error correction model (VECM) to estimate the short- and long-run causal relationships while accounting for endogeneity and reverse causality. The results suggest the existence of a significant short-run and long-run association between house prices and macroeconomic fundamental variables under review. More specifically, the empirical results presented reveal that the gross domestic product and producer price index had the most impact on house prices compared to all other variables. Furthermore, any disequilibrium of house prices from its fundamental determinants in the short-run always self-corrects in the long run. DA - 2021_ DB - OpenUCT DP - University of Cape Town KW - Economics LK - https://open.uct.ac.za PY - 2021 T1 - The dynamic effect of macroeconomic factors on housing prices: Evidence from South Africa TI - The dynamic effect of macroeconomic factors on housing prices: Evidence from South Africa UR - http://hdl.handle.net/11427/35892 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/35892
dc.identifier.vancouvercitationLekhuleni TI. The dynamic effect of macroeconomic factors on housing prices: Evidence from South Africa. []. ,Faculty of Commerce ,School of Economics, 2021 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/35892en_ZA
dc.language.rfc3066eng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.subjectEconomics
dc.titleThe dynamic effect of macroeconomic factors on housing prices: Evidence from South Africa
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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