the effect of housing assets on private consumption expenditures in iran

The purpose of this study is to measure and analyze the effect ofhousing assets on private sector consumption using time seriesdata in iran for 1985-2020. this study analyzes the relationshipin the form of an autoregressive distributed lag (ardl)econometric model using eviews software. the short-term andlong-term marginal propensity to consume of permanent income,housing and financial assets is also employed. the short-term andlong-term marginal propensity to consume of permanent incomeare 0.55 and 0.69 and the short-term and long-term marginalpropensity to consume of permanent income of housing assetsare 0.56 and 0.70. the error correction model shows theadjustment of short-term disequilibrium with a coefficient of0.48, which is a reasonable relative adjustment rate. anotherresult of this study is the positive significant effect of financialassets on private consumption in iran. various studies in this fieldaround the world show the importance of this issue, such as donget al. (2021), mian et al. (2016), burrowss (2018), cho (2016),lacoviello (2015), beatrice & kengne (2015), and otherresearchers who have studied the impact of housing prices onhousehold expenditure in china, chicago, south korea, theunited states, the united kingdom, etc.