Assets are crucial economic capital. Housing, part of the real estate market, is vital for families as it represents one of the basic needs for human settlement and development. In recent years, the increasing trend of the housing price index has become one of the most significant economic challenges. The housing market significantly impacts the financial cycle of the economy and is interconnected with surrounding markets. This research aims to investigate the threshold and non-linear effects of bank loans, facilities, and other economic indicators on housing prices across various provinces in Iran. Provincial data from the years 2010 to 2022 has been utilized for this purpose. In this study, a threshold panel model with fixed effects was employed to explore the non-linear effects of bank facilities on housing prices. The results indicate that when considering total inflation and urban population as threshold variables, the facilities provided by banks—both those with high regimes and those with low regimes —positively and significantly impact inflation in the housing sector across various provinces in Iran. Additionally, these effects become even more pronounced when values exceed the threshold level. Recent results indicate that, after validating the nonlinear effects in the model, the housing sector supply has a negative impact on the housing price index. Conversely, increases in household expenses and the exchange rate significantly and positively affect the housing price index in various provinces of Iran. Therefore, it is recommended to policymakers to identify the factors affecting housing prices in the Iranian economy and consider serious solutions to deal with them.
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Mahmoudinia, D., & Mohseni, S. (2025). Threshold effects of bank credits and facilities on the housing price index in Iranian provinces. Public Sector Economics Studies, 4(1), 113-146. doi: 10.22126/pse.2024.11195.1157
MLA
Davoud Mahmoudinia; Samira Mohseni. "Threshold effects of bank credits and facilities on the housing price index in Iranian provinces". Public Sector Economics Studies, 4, 1, 2025, 113-146. doi: 10.22126/pse.2024.11195.1157
HARVARD
Mahmoudinia, D., Mohseni, S. (2025). 'Threshold effects of bank credits and facilities on the housing price index in Iranian provinces', Public Sector Economics Studies, 4(1), pp. 113-146. doi: 10.22126/pse.2024.11195.1157
VANCOUVER
Mahmoudinia, D., Mohseni, S. Threshold effects of bank credits and facilities on the housing price index in Iranian provinces. Public Sector Economics Studies, 2025; 4(1): 113-146. doi: 10.22126/pse.2024.11195.1157
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