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The health consequence of rising housing prices in China

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  • Xu, Yuanwei
  • Wang, Feicheng

Abstract

This paper examines the health consequence of rising housing prices in China by exploiting spatial and temporal variation in housing price appreciation linked to individual-level health data from 2000 to 2011. Using an instrumental variable approach, we find that increases in housing prices significantly raise the probability of having chronic diseases. The deep-rooted marriage culture of males being obligated to buy a home before getting married and the growing marriage market competition are the main channels that exacerbate the negative health effects, particularly for parents with marriage-age sons. We also show that increased work intensity, high levels of stress, and lifestyle changes are other possible channels. Our results highlight the unintended health consequences of the real estate market prosperity.

Suggested Citation

  • Xu, Yuanwei & Wang, Feicheng, 2022. "The health consequence of rising housing prices in China," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 114-137.
    • Handle: RePEc:eee:jeborg:v:200:y:2022:i:c:p:114-137
    DOI: 10.1016/j.jebo.2022.05.011
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    2. Qiren Liu & Sen Luo & Robert Seamans, 2023. "Pain or Anxiety? The Health Consequences of Rising Robot Adoption in China," Papers 2301.10675, arXiv.org.
    3. Jiru Song & Mingzheng Hu & Shaojie Li & Xin Ye, 2023. "The Impact Mechanism of Household Financial Debt on Physical Health in China," IJERPH, MDPI, vol. 20(5), pages 1-13, March.

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    More about this item

    Keywords

    Housing prices; Chronic diseases; Health; Marriage market competition; China;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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