Births and housing needs in Spain: an analysis of causality

Montserrat Diaz, Universidad de Oviedo
Mar Llorente, Universidad de Oviedo

OBJETIVE.- The study analyzes in Spain the relationship between the housing market and births (January 1986-December 2009). METHOD.- The processs of analysis follows traditional patters in time series studies. You specify a Vector Error Correction (VEC). This will consider the dynamic adjustment of the variables in both the short as long term. RESULTS.- It checks the domain short or long term effect. The resulting serie is a linear combination of both and have short memory. CONCLUSIONS.- The demography variable contributes to achieving the long-run equilibrium when there are changes in the socioeconomic sphere.