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Does the DiPasquale-Wheaton Model Explain the House Price Dynamics in China Cities?

Author

Listed:
  • Kenneth K. Chow

    (Hong Kong Institute for Monetary Research)

  • Matthew S. Yiu

    (Hong Kong Institute for Monetary Research)

  • Charles Ka Yui Leung

    (City University of Hong Kong)

  • Dickson C. Tam

    (China International Capital Corporation Limited)

Abstract

The "overheating" of the Chinese housing market in recent years has caught the attention of policy makers, the research community, as well as the general public. Leung and Wang (2007) shows that the qualitative features of the aggregate Chinese housing market are well captured by the DiPasquale-Wheaton (1992) model. This paper estimates a version of the DiPasquale-Wheaton (1994) model with four major Chinese cities: Beijing, Tianjin, Shanghai and Chongqing. It examines the factors which affect the housing price and construction. Policy implications and future research directions are also discussed.

Suggested Citation

  • Kenneth K. Chow & Matthew S. Yiu & Charles Ka Yui Leung & Dickson C. Tam, 2008. "Does the DiPasquale-Wheaton Model Explain the House Price Dynamics in China Cities?," Working Papers 212008, Hong Kong Institute for Monetary Research.
    • Handle: RePEc:hkm:wpaper:212008
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    References listed on IDEAS

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    Cited by:

    1. Alain Chaney & Martin Hoesli, 2015. "Multifamily residential asset and space markets and linkages with the economy," Journal of Property Research, Taylor & Francis Journals, vol. 32(1), pages 50-76, March.
    2. Fang, Li & Tian, Chuanhao, 2018. "Housing and marital matching: A signaling perspective," China Economic Review, Elsevier, vol. 47(C), pages 27-46.
    3. Gaetano Lisi, 2020. "Tweaking the DiPasquale–Wheaton–Colwell model," Letters in Spatial and Resource Sciences, Springer, vol. 13(2), pages 201-208, August.

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    More about this item

    Keywords

    Housing Market Dynamics; Cross-city Difference; Panel Data Method;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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