Do Bank Loans and Local Amenities Explain Chinese Urban House Prices?

75 Pages Posted: 5 Mar 2015

See all articles by Daisy Huang

Daisy Huang

Southwestern University of Finance and Economics (SWUFE)

Charles K. Leung

City University of Hong Kong

Baozhi Qu

China Merchants Group

Multiple version iconThere are 2 versions of this paper

Date Written: March 3, 2015

Abstract

Based on Chinese city-level data from 1999 to 2012 and controlling for geological, environmental, and social diversity, our multi-step estimation suggests that credit plays a significant role in driving up house prices after the Great Recession, whereas property prices only influence bank lending before 2008. Local amenities such as higher education, green infrastructure, healthcare, and climate also positively affect house prices. Moreover, the impacts of bank loans on housing prices tend to be related to the level of amenities, suggesting pooling macroeconomic and urban economic data may be important for housing market research in the future.

Keywords: city-level house price dynamics; endogenous income and endogenous amenities; bank loans and monetary policy; multicollinearity; clustered standard errors

JEL Classification: G21; O18; R11

Suggested Citation

Huang, Daisy and Leung, Charles Ka Yui and Qu, Baozhi, Do Bank Loans and Local Amenities Explain Chinese Urban House Prices? (March 3, 2015). Available at SSRN: https://ssrn.com/abstract=2573438 or http://dx.doi.org/10.2139/ssrn.2573438

Daisy Huang

Southwestern University of Finance and Economics (SWUFE) ( email )

55 Guanghuacun St,
Chengdu, Sichuan 610074
China

Charles Ka Yui Leung (Contact Author)

City University of Hong Kong ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Baozhi Qu

China Merchants Group ( email )

38th Floor, Shun Tak Centre
168-200 Connaught Rd. C
Hong Kong
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
21
Abstract Views
609
PlumX Metrics