Stock and house are two major assets which play important roles in the balance sheet of Iranian households. Changes in the two markets have a large influence on wealth and the general economy. The purpose of this study is to examine the relationship between stock and house prices over a thirty-year period using vector auto-regression (VAR). Using yearly data for the period from 1985 to 2013, we conducted a Granger-causality test and Impulse response functions (IRF). The causality test is performed with control variables and the results supply evidence on the bidirectional relationship between house price and stock price. Impulse response function is estimated in order to investigate the size and timing of the causality. The IRF concludes that, when the impulse is stock price, every response of house price is most positive and the values fluctuate around the line zero at each time period.

This paper investigates the linkage between total index of Tehran stock exchange (TSE) and non-official exchange ratesby daily data from May 2011 to May 2013. In this period, exchange rate tripled and TSE doubled. Johansen Cointegration test and VECM model applied to specify this linkage. Exchange rates and TSE found to be Co-integrated. TSE has positive response to exchange rates but exchange rate has negative response to TSE and it is weak exogenous.