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What drives housing consumption in China? Based on a dynamic optimal general equilibrium model and spatial panel data analysis

Author

Listed:
  • Zhipeng DU

    (College of Economics & Management, South China Agricultural University, China.)

  • Wei Kun ZHANG

    (College of Economics & Management, South China Agricultural University, China.)

  • Yiming HE

    (National School of Agricultural Institution & Development, South China Agricultural University. Division of Resource Management, West Virginia University, U.S.A.)

Abstract

This paper examines the housing sales in China from 2004 to 2015 utilizing an optimal dynamic general equilibrium theoretical framework combined with a macroeconomic model. The spatial panel econometric empirical results suggest that housing prices and economic growth have increased housing sales in China. However, since house is considered as a special commodity in China, and unemployment show negative impacts on housing sales.

Suggested Citation

  • Zhipeng DU & Wei Kun ZHANG & Yiming HE, 2018. "What drives housing consumption in China? Based on a dynamic optimal general equilibrium model and spatial panel data analysis," Journal of Economics and Political Economy, KSP Journals, vol. 5(1), pages 1-26, March.
    • Handle: RePEc:ksp:journ1:v:5:y:2018:i:1:p:1-26
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    References listed on IDEAS

    as
    1. Aoki, Kosuke & Proudman, James & Vlieghe, Gertjan, 2004. "House prices, consumption, and monetary policy: a financial accelerator approach," Journal of Financial Intermediation, Elsevier, vol. 13(4), pages 414-435, October.
    2. Tang, Mingzhe & Coulson, N. Edward, 2017. "The impact of China's housing provident fund on homeownership, housing consumption and housing investment," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 25-37.
    3. Federico Belotti & Gordon Hughes & Andrea Piano Mortari, 2017. "Spatial panel-data models using Stata," Stata Journal, StataCorp LP, vol. 17(1), pages 139-180, March.
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    More about this item

    Keywords

    Energy use; Housing values; Optimal dynamic general equilibrium; Spatial panel econometrics; China.;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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