Rental price convergence in a developing economy: New evidence from nonlinear panel unit root test
Abstract
We examine the hypothesis of nonlinear rental price convergence using relative rental price index of three major cities of Turkey namely, Istanbul, Izmir, and Ankara span from the period from January 1994 to February 2010. Our results indicate that all cities exhibit rental price convergence towards its national mean level for the period of January 1994 to December 2004. In contrast, none of the cities show evidence of convergence from January 2005 to February 2010. The evidence clearly shows rental price divergence in Turkish property market.
First Published Online: 09 Jun 2011
Keywords:
Turkey, Housing industry, Major cities of Turkey, Panel unit root test, Rental price movementHow to Cite
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Copyright (c) 2010 The Author(s). Published by Vilnius Gediminas Technical University.
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Copyright (c) 2010 The Author(s). Published by Vilnius Gediminas Technical University.
License
This work is licensed under a Creative Commons Attribution 4.0 International License.