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Regional Housing Supply Elasticity in China 1999-2013: A Spatial Equilibrium Analysis

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  • Dan S. Rickman

    (Oklahoma State University)

  • Hongbo Wang

    (Oklahoma State University)

Abstract

In this paper, we apply a spatial equilibrium growth model (Glaeser and Tobio, 2008) to examine relative housing price growth across the provinces and municipalities of mainland China for 1999-2013. The spatial equilibrium growth model is built upon the traditional static Rosen- Roback spatial equilibrium model. A distinguishing feature is the addition of a regionally- varying elasticity of housing supply. A primary finding is the significant geographical differences in housing price growth and the importance of differences in regional housing supply in explaining the differences in housing price growth. Regions in the East had the most inelastic housing supply, while northern regions had the most elastic housing supply.

Suggested Citation

  • Dan S. Rickman & Hongbo Wang, 2016. "Regional Housing Supply Elasticity in China 1999-2013: A Spatial Equilibrium Analysis," Economics Working Paper Series 1606, Oklahoma State University, Department of Economics and Legal Studies in Business.
    • Handle: RePEc:okl:wpaper:1606
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    More about this item

    Keywords

    Chinese housing markets; Housing supply elasticity; Urban economics; Economic geography;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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