Housing Prices and Business Cycle in China: A DSGE Analysis

Qing He (), Fangge Liu, Zhongxin Qian and Terence Tai Leung Chong

MPRA Paper from University Library of Munich, Germany

Abstract: We investigate the interaction between the real estate market and the business cycle volatility in China over the past two decades. A Bayesian dynamic stochastic general equilibrium (DSGE) model with nominal stickiness and collateral constraints is estimated. It is found that shocks from the housing market (e.g., loan-to-value ratio and housing preference shocks) affect the macroeconomy of China. The interactive feedback between credit constraints and housing prices amplifies the impact of various economic shocks, which plays an important role in explaining the business cycle volatility in China.

Keywords: housing prices; business cycle; DSGE; China (search for similar items in EconPapers)
JEL-codes: E32 E42 R31 (search for similar items in EconPapers)
Date: 2016-07-21
New Economics Papers: this item is included in nep-cna, nep-dge, nep-mac, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/75921/2/MPRA_paper_75921.pdf original version (application/pdf)

Related works:
Journal Article: Housing prices and business cycle in China: A DSGE analysis (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:75921

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().