Solak, Ali Osman; Kabadayi, Burhan

In this study, housing demand in Turkey was examined with bounds testing approaches for the period of 1964-2014. The total square meters of houses sold was taken as housing demand. The explanatory variables of the study are the real price of one square meter of housing, real income level, and urban population. Firstly, stationary properties of the series were checked by unit root tests, then co-integration was investigated. Lastly, we ran the autoregressive lag model process. We found that Turkey is more sensitive to income level and there is positive relationship between prices and housing demand. This might be accounted for by the fact that houses are kinds of investment goods in Turkey.

Kabadayi, Burhan; Çelik, Ahmet Alkan

The aim of this paper is to study determinants of sovereign ratings of emerging countries. The effects of macroeconomic and political variables on the ratings are analyzed by probit and logit panel data analysis. This empirical research determines whether the sovereign ratings of emerging countries are independent of macroeconomic indicators of these countries. It might be vital to know the effects of macroeconomic variables on sovereign rating for politicians, foreign investors, monetary authorities and academicians. Thus, we need efficient and strong models explaining sovereign rating. In the empirical model of the study, qualitative and dependent variable models were used to check the effects of current account deficits, external debts, gross domestic product per capita, real exchange rates, inflations, savings rates and political qualities on sovereign ratings that are exported by three large rating agencies’ (S & P, Moodys and Fitch). The results show that macroeconomic political variables affect sovereign ratings.