The interaction between property returns and the macroeconomy: Evidence from South Africa
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Title | The interaction between property returns and the macroeconomy: Evidence from South Africa |
Authors | |
Abstract | A study on the interactions between property returns and the macro-economy in the UK provides contrasting results with those based on the American economy which forms the basis for this research (Brooks and Tsolacos 1999). This study therefore employs a vector autoregressive models to establish the interactions between macroeconomic and financial variables on the South African economy, a proxy for developing and transitional economies. Property assets have generally been viewed as value-growth assets due to their inflation tracking nature. Values of property-based assets may be measured through direct measures and/or equity-based measures. The two different methods of measuring the value of property-based assets available are shrouded with drawbacks although equity-based measures are theoretically preferred. This study uses direct measures to determine the impulse response functions and variance decompositions on the rate of short-term nominal rates, long-term and short-term interest differentials, inflation rate and household debt/ disposable income in South Africa. |
Publisher | International Journal of Business and Social Research |
Date | 2013-07-03 |
Source | 2164-2540 |
Rights | This is an open access journal which means that all content is freely available without charge to the user or his/her institution. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission from the publisher or the author. |