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

HKIMR Working Paper No. 21/2008

40 Pages Posted: 4 Jan 2009

See all articles by Kenneth K. Chow

Kenneth K. Chow

Hong Kong Institute for Monetary Research

Matthew S. Yiu

Hong Kong Monetary Authority - Hong Kong Institute for Monetary Research (HKIMR)

Charles K. Leung

City University of Hong Kong

Dickson Tam

Hong Kong Monetary Authority - Hong Kong Institute for Monetary Research (HKIMR)

Date Written: November 30, 2008

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.

Keywords: Housing Market Dynamics, Cross-city Difference, Panel Data Method

JEL Classification: C33, E30, R00

Suggested Citation

Chow, Kenneth K. and Yiu, Matthew S. and Leung, Charles Ka Yui and Tam, Dickson, Does the Dipasquale-Wheaton Model Explain the House Price Dynamics in China Cities? (November 30, 2008). HKIMR Working Paper No. 21/2008, Available at SSRN: https://ssrn.com/abstract=1321967 or http://dx.doi.org/10.2139/ssrn.1321967

Kenneth K. Chow (Contact Author)

Hong Kong Institute for Monetary Research ( email )

55/F, Two International Finance Centre
8 Finance Street, Central
Hong Kong
Hong Kong
2878 1975 (Phone)
2878 7006 (Fax)

Matthew S. Yiu

Hong Kong Monetary Authority - Hong Kong Institute for Monetary Research (HKIMR) ( email )

55/F Two IFC
8 Finance Street, Central
Hong Kong, HK
China
+852 2878 1974 (Phone)
+852 2878 7006 (Fax)

Charles Ka Yui Leung

City University of Hong Kong ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Dickson Tam

Hong Kong Monetary Authority - Hong Kong Institute for Monetary Research (HKIMR) ( email )

3 Garden Road, 8th Floor
Hong Kong
China

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