BIRTHS AND HOUSING NEEDS IN SPAIN. AN ANALYSIS OF CAUSALITY MONTSERRAT DIAZ Quantitative Economics Professor QUANTITATIVE ECONOMICS DEPARTMENT FACULTY OF ECONOMICS AND BUSINESS OVIEDO UNIVERSITY MAR LLORENTE Quantitative Economics Professor QUANTITATIVE ECONOMICS DEPARTMENT FACULTY OF ECONOMICS AND BUSINESS OVIEDO UNIVERSITY OBJETIVE.- The study analyzes the relationship between the housing market and births in Spain (January 1986-December 2009). METHOD.- The process of analysis follows traditional patterns in time series studies. A Vector Error Correction (VEC) is specified. VEC will allow consider the adjustment dynamics of the variables in both the short and long term. RESULTS.- The domain of the effect of short on the long term effect is evaluated. The resulting series is a linear combination of both series and displays a short memory. CONCLUSIONS.- The demographic variable contributes to achieving the long-run equilibrium when there are changes in the socioeconomic sphere. ABSTRACT INTRODUCTION METHODOLOGY RESULTS !" !#$%&