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Crowding-out effects of affordable and unaffordable housing in China, 1999-2010

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  • Nannan Yuan
  • Shigeyuki Hamori

Abstract

Using panel data on housing construction, this article examines the crowding-out effects of affordable and unaffordable housing in China from 1999 to 2010. Applying a dynamic panel model allows us to examine the dynamic interactions between affordable and unaffordable housing constructions when controlling for region-specific fixed and time-specific effects. We analyse whether affordable (unaffordable) housing construction has changed in response to the past and contemporaneous construction of unaffordable (affordable) housing. Our empirical results reveal an asymmetric crowding-out pattern between affordable and unaffordable housing. We also observe that when urbanization rate is lower than 57.39%, unaffordable housing construction crowds out affordable housing construction. Moreover, the crowding-out effect of unaffordable housing on affordable housing decreases with rising urbanization rates.

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  • Nannan Yuan & Shigeyuki Hamori, 2014. "Crowding-out effects of affordable and unaffordable housing in China, 1999-2010," Applied Economics, Taylor & Francis Journals, vol. 46(35), pages 4318-4333, December.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4318-4333
    DOI: 10.1080/00036846.2014.957441
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    Cited by:

    1. Xie He & Xiao-Jing Cai & Shigeyuki Hamori, 2018. "Bank Credit and Housing Prices in China: Evidence from a TVP-VAR Model with Stochastic Volatility," JRFM, MDPI, vol. 11(4), pages 1-16, December.
    2. Yi Wu & Yunong Li, 2018. "Impact of government intervention in the housing market: evidence from the housing purchase restriction policy in China," Applied Economics, Taylor & Francis Journals, vol. 50(6), pages 691-705, February.
    3. Hongbo Wang & Dan Rickman, 2018. "Regional growth differences in China for 1995–2013: an empirical integrative analysis of their sources," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 99-117, January.
    4. Yang Hu & Rory Coulter, 2017. "Living space and psychological well-being in urban China: Differentiated relationships across socio-economic gradients," Environment and Planning A, , vol. 49(4), pages 911-929, April.

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