IDEAS home Printed from https://ideas.repec.org/a/ahs/journl/v10y2025i1p127-139.html
   My bibliography  Save this article

Dynamics of Causality between Real Estate and Stock Prices: Evidence from Türkiye

Author

Listed:
  • Evrim TURGUTLU
  • Pınar NARİN EMİRHAN

Abstract

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.

Suggested Citation

  • Evrim TURGUTLU & Pınar NARİN EMİRHAN, 2025. "Dynamics of Causality between Real Estate and Stock Prices: Evidence from Türkiye," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 10(1), pages 127-139.
    • Handle: RePEc:ahs:journl:v:10:y:2025:i:1:p:127-139
    DOI: https://doi.org/10.30784/epfad.1599083
    as

    Download full text from publisher

    File URL: https://dergipark.org.tr/tr/download/article-file/4429391
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.30784/epfad.1599083?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Real Estate Prices; Stock Prices; Asymmetric Relationship; Nonlinear ARDL Models;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ahs:journl:v:10:y:2025:i:1:p:127-139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ersan Ersoy (email available below). General contact details of provider: https://epfjournal.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.