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The effect of social capital on housing prices: panel data analysis by province in Turkey

Abdulmuttalip Pilatin (Department of Finance and Banking, Recep Tayyip Erdoğan University, Rize, Turkey)
Ali Hepşen (Business Department, Istanbul University, İstanbul, Turkey)
Onur Kayran (Department of Finance and Banking, Recep Tayyip Erdoğan University, Rize, Turkey)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 24 January 2023

281

Abstract

Purpose

This study aims to reveal whether social capital has an effect on the housing price index in Turkey, which is a developing country. The research was carried out by using the data on the basis of 81 provinces of Turkey in a 12-year period covering the years 2007–2018.

Design/methodology/approach

The data were subjected to panel data regression analysis and the related models were tested using the Driscoll-Kraay (1998) Estimator.

Findings

According to the results of the analysis, it was understood that there is a negative and significant relationship between social capital (SC1) and the housing price index. The results were corroborated by susceptibility testing. As the level of social capital rises in the provinces in Turkey, the manipulative and opportunistic behavior tendencies of individual and corporate house sellers decrease. These results support the principal–agent theory and theory of moral hazard, which constitute the theoretical background of the study.

Originality/value

No study has been found in the literature on the effect of social capital on housing prices. This situation constitutes the main motivation source of the study and shows its originality.

Keywords

Acknowledgements

This study is an enhanced version of the paper presented at the 25th Finance Symposium in Turkey.

Disclosure statement: No potential conflict of interest was reported by the authors.

Citation

Pilatin, A., Hepşen, A. and Kayran, O. (2023), "The effect of social capital on housing prices: panel data analysis by province in Turkey", International Journal of Housing Markets and Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJHMA-11-2022-0170

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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