I am a 3rd year economics student and one of the courses in the degree is academic literacy.
As part of the course I am required to write a "proposal for a policy paper". The research question I chose is:
"What is the effect of interest rate changes in the economy on the rent in Israel?"

As part of the proposal for the policy paper please write:
1. Importance: The importance of the policy question I have chosen
2. Literature: Literature and relevant findings exist. Concentrate on at least 3 existing articles or reports, with a long and detailed description of each, and an explanation of why it is relevant to the policy question I have chosen
 1. Importance: The question of how interest rate changes in the economy affect rent in Israel is an important one for several reasons. First, housing is a basic need and a significant component of many people's budgets. Understanding how interest rate changes may impact housing costs can help policymakers and stakeholders make informed decisions about economic policy. Additionally, interest rate changes can have broader implications for the overall economy, including impacts on investment, consumption, and economic growth. As such, understanding the relationship between interest rate changes and rent can provide valuable insights into the workings of the economy as a whole.
2. Literature: There is a growing body of literature examining the relationship between interest rate changes and housing markets. The following are three relevant articles and reports that provide a foundation for understanding the potential impacts of interest rate changes on rent in Israel:

a) Arestis, P., & Gonzalez, M. (2014). Interest rates and housing prices: A panel data analysis. Applied Economics, 46(22), 2555-2565. This study uses panel data analysis to examine the relationship between interest rates and housing prices in a sample of 17 OECD countries over the period 1980-2011. The authors find that lower interest rates are associated with higher housing prices, suggesting that interest rate changes can have a significant impact on housing
I am a 3rd year economics student and one of the courses in the degree is academic literacy.
As part of the course I am required to write a "proposal for a policy paper". The research question I chose is:
"What is the effect of interest rate changes in the economy on the rent in Israel?"

As part of the proposal for the policy paper please write:
1. Importance: The importance of the policy question I have chosen
2. Literature: Literature and relevant findings exist. Concentrate on at least 3 existing articles or reports, with a long and detailed description of each, and an explanation of why it is relevant to the policy question I have chosen.
3. Methodology: The research methodology I will use to answer the research question.
4. Data: The data I will use, where I will obtain it, and how I will process it.
5. Limitations: The limitations of the research.

1. Importance:
The policy question I have chosen is of great importance as it touches on two crucial aspects of the Israeli economy: the housing market and the monetary policy. The housing market is one of the most significant sectors in the Israeli economy, as it affects a large portion of the population, and its stability is essential for the overall stability of the economy. On the other hand, monetary policy is a key tool used by the central bank to maintain economic stability. Understanding the effect of interest rate changes on rent can help policymakers make informed decisions about the use of monetary policy tools, and can contribute to the stability of the housing market and the overall economy.

2. Literature:
a) "The effect of interest rates on rental prices: Evidence from the United States" by John C. Hodges and James R. Hoehn (2006). This study examines the relationship between interest rates and rental prices in the United States, using data from the Consumer Expenditure Survey and the Federal Reserve Economic Data (FRED). The authors find a negative relationship between interest rates and rental prices, suggesting that an increase in