Discussion Paper

No. 2015-8 | February 16, 2015
Do Soaring Global Oil Prices Heat up the Housing Market? Evidence from Malaysia

Abstract

This study analyses the effects of oil price and macroeconomic shocks on the Malaysian housing market using a SVAR framework. The specification of the baseline model is based on standard economic theory. The Gregory-Hansen (GH) cointegration tests reveal that there is no cointegration among the variables of interest. Results from performing Toda-Yamamoto (TY) non-Granger causality tests show that oil price, labor force and inflation are the leading factors causing movements in the Malaysian housing prices in the long run. The findings from estimating generalized impulse response functions (IRFs) and variance decompositions (VDCs) indicate that oil price and labor force shocks explain a substantial portion of housing market price fluctuations in Malaysia.

Data Set

JEL Classification:

Q43, O18, F62

Assessment

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Links

Cite As

Thai-Ha Le (2015). Do Soaring Global Oil Prices Heat up the Housing Market? Evidence from Malaysia. Economics Discussion Papers, No 2015-8, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2015-8


Comments and Questions


Anonymous - Referee Report 1
March 30, 2015 - 13:46

See attached file


Ha Le - Response to Referee Report 1
April 06, 2015 - 04:41

I would like to thank the anonymous referee for the insightful comments. I agree with all the comments raised by the referee. In the attached document, I specify how I am going to take the referee’s comments into account when revising the manuscript.


Anonymous - Referee Report 2
April 30, 2015 - 11:42

see attached file


Ha Le - Response to Referee Report 2
May 06, 2015 - 06:06

I am grateful to the referee for helpful suggestions. I agree with all the comments raised by the referee. The following specifies how I am going to take the referee’s comments into account when revising the manuscript.