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Studying the Influence of Construction Projects of Tehran Municipality on the Cost of Home in Iran-Tehran

Journal of Commerce and Accounting Research

Volume 3 Issue 2

Published: 2014
Author(s) Name: Mehdi Alizadeh, Hossein Ojaghi | Author(s) Affiliation: Islamic Republic of Iran.
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Abstract

The influence of various effective factors on urban economy is manifested in the cost of house and land. Population changes, large scale and regional policy-making, performing urban projects and labor market developments are among the most important and influential issues on the economy of land and urban housing. On the other hand, changes in the cost of land and house cause changes in supply of house or construction in the whole land and house market. In the literature of economy, cost is the most important factor which determines the behavior of the customer who tries to optimize his demand and favourability based on his budget and goods cost. Construction projects like building roads, highways, tunnels, bridges, etc. contribute to the cost of housing in a region. This research is an analysis of influential factors (land cost, total municipal costs, municipal construction costs, the construction costs of each region, total costs in each region) on the cost of house (regardless of factors like liquidity, coin and exchange rate, demand growth, etc.) over the period of 2005 to 2011. In this research, we have used housing cost based on the econometric model through Mini-tab 16 software. To test the hypothesis, the basic data about 22 municipal districts of Tehran were examined using collinearity test and Breusch–Pagan auto-correlation test. The results suggest that there is a negative meaningful relationship between tax avoidance and corporate transparency and also firm value.

Keywords: Municipal Construction Costs, Econometrics, Housing Cost, Construction Projects

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