|
|
|
|
||||
|
||||
What Drives Urban Consumption in Mainland China? The Role of Property Price DynamicsYu-Fu ChenUniversity of Dundee - Department of Economic Studies Michael FunkeUniversity of Hamburg - Department of Economics and Business Administration; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Aaron N. MehrotraBank for International Settlements (BIS) May 27, 2011 HKIMR Working Paper No. 15/2011 Abstract: This paper adds to the literature on wealth effects on consumption by disentangling house price effects on consumption for mainland China. In a stochastic modelling framework, the riskiness, rate of increase and persistence of house price movements have different implications for the consumption/housing ratio. We exploit the geographical variation in property prices by using a quarterly city-level panel dataset for the period 1998Q1-2009Q4 and rely on a panel error correction model. Overall, the results suggest a significant long run impact of property prices on consumption. They also broadly confirm the predictions from the theoretical model.
Number of Pages in PDF File: 30 Keywords: consumption, house prices, China, panel data JEL Classification: E21, R31, C23, O53 working papers seriesDate posted: June 20, 2011Suggested CitationContact Information
|
|
||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo2 in 0.531 seconds
