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The Effect of Divorce on Urban Housing Costs in Iran: A Spatial Autocorrelation Model

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Listed:
  • Abounoori , Esmaiel

    (Department of Economics, Semnan University)

  • Abdoh Tabrizi , Hossein

    (Tehran, Iran)

  • Mahmoodi , Nooshin

    (Department of Economics, Semnan University)

Abstract

In addition to traditional factors, demographic changes also depend on factors such as marriage and divorce. Yet only a few researchers investigated the impact of divorce on housing costs. The aim of this paper is to estimate the effect of divorce on housing costs in Iran. Doing so, we have applied a fixed Panel Spatial Autocorrelation model using the data from a set of Iranian provinces over the period of 2006-2014. The results indicate that a one-percent point rise in divorce increases housing rental index by about 1.05% point directly and indirectly. The outcomes also show that household size has a negative and significant effect, but the per capita gross domestic product and the population have positive and significant effects on the housing rental index. On average, a one-percent point increase in the housing rental index of any provinces will increase the housing rental index in a province by about 0.34 percentage points.

Suggested Citation

  • Abounoori , Esmaiel & Abdoh Tabrizi , Hossein & Mahmoodi , Nooshin, 2017. "The Effect of Divorce on Urban Housing Costs in Iran: A Spatial Autocorrelation Model," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 12(2), pages 107-122, April.
    • Handle: RePEc:mbr:jmonec:v:12:y:2017:i:2:p:107-122
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Housing; Divorce; Spatial Econometrics; Iran;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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