The investigation of the dynamic linkages between real estate market and stock market in Greece

Dimitrios Gounopoulos, Dimitris Kousenidis, Kuriaki Kosmidou, Viktoria Patsika

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We use quarterly data from Greece over the period 1997:1–2015:2 and investigate the dynamic linkages between the price of the real estate market and the price of the stock market focusing on two transmission mechanisms, namely the wealth and credit-price effects. The empirical analysis employs advanced methodological techniques and presents evidence supporting the existence of both the wealth effect and the credit effect in the long-run while in the short-run there is a one-way causal effect running from stock market towards house market. Results reveal asymmetric adjustment to equilibrium process and considerably stronger for positive deviations from the equilibrium.
Original languageEnglish
Pages (from-to)647-669
Number of pages24
JournalThe European Journal of Finance
Issue number7
Early online date22 Oct 2018
Publication statusPublished - 2019


  • House prices
  • linear cointegration
  • stock market
  • wealth–credit effect

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (miscellaneous)

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