The Research Department of Economics and Management of Tadbir Nikan Business, Marketing, and Finance Open 3092-6238 In Press 2026 09 01 Development of a Dynamic Spatial Durbin Model with Generalized Common Effects (SDM-DPD(GCE)) to Examine the Impact of Macroeconomic Indicators on Housing Prices in Iran Development of a Dynamic Spatial Durbin Model with Generalized Common Effects (SDM-DPD(GCE)) to Examine the Impact of Macroeconomic Indicators on Housing Prices in Iran 1 19 EN Journal Article 2026 01 01 <p>Regional housing prices in emerging economies are simultaneously shaped by common macroeconomic shocks, geographic spillovers and local speculative behaviour. Jointly assessing their relative roles within a single framework is the aim of this paper. We study Iran’s 31 provinces over 2015–2024 using a Dynamic Spatial Durbin Model with Generalised Common Effects (SDM-DPD(GCE)), estimated by Quasi-Maximum Likelihood. After removing the dominant common macro factor, a spatial ripple coefficient of 0.593 emerges, consistent with cross-border price linkages, conditional on the maintained model specification, rather than shared exposure to national shocks. A lagged provincial herding proxy (CSAD) is associated with further price divergence the following year, with a total effect of 1.721 once spatial feedback is accounted for. A structural break at 2018 marks a sharp intensification of both dynamics, coinciding with Iran’s major currency shock. The paper also provides empirical evidence consistent with the view that extreme cross-sectional dependence can suppress Moran’s I in raw panels, a diagnostic pitfall relevant to any high-CD empirical setting.</p> https://bmfopen.com/index.php/bmfopen/article/download/437/338