Prescience evidence of the housing market and production sector performance nexus: Insights from Malta

摘要: Observation of misalignment the house prices with fundamentals in Malta was recently investigated (Vakili-Zad and Hoekstra, 2011; Micallef, 2018). As such, this study aims to investigate nexus evidence housing market production sector performance by using quarterly data spanning from 2005Q1 2016Q4.,Industrial expansion development indicator-producer price index (ppi) unemployment (uem) are used along volatility (vix) fertility rate (frate) as control variables a multivariate autoregressive distributed lag approach.,Precisely, investigation reveals that any disequilibrium long-run equilibrium among these is subsequently corrected movement vis-a-vis real residential property price. system observed adjust speed 39.7 per cent situation economic disequilibrium, impacts on positive for ppi vix but negative frate eum. The direction short-run same all variables. A reported sensitivity test indicates very minimal differential impact each variable significantly different adjustment parameter 81.9 cent. Also, estimated posits stable model void serial correlation heteroskedasticity.,In view vibrant nature estate country, consideration effective policy instruments provided strongly encouraged. On wider note, practicable tools could further be recommended other regional countries.,The research presents novel perspective Malta, specifically light diversification. country’s studied relation sectors first time.