An investigation on the effects of Mehr housing on the housing market of Iran

In this article، the impact of Mehr housing scheme on the housing market of Iran is investigated by using panel data and asymmetric ARDL model proposed by Schein، Yu، and Greenwood-Nemov (2011). For this purpose، the data for nine provinces namely: Tehran، Guilan، Mazandaran، Eastern Azerbaijan، Khuzestan، Fars، Isfahan، Hamedan، and Zanjan in the period 1991 to 2011 are applied. The variables are extracted from Poterba and Tobin model، and we assume the issued building permits to be our variable in estimating the effect of Mehr housing on the house price. Our results show the high impact of the number of households (population) variable، and the liquidity on housing price. Also، the important conclusion is that the Mehr housing scheme has not been able to reduce housing prices and prohibit its indiscriminate growth. However، performance of the plan has affected the expectations of people for future، and resulted in stagnation of housing transactions which itself has caused the relative decline of housing price.