Monetary Policy, House Prices, and Consumption in China: A National and Regional Study
Zan Yang (),
Shuping Wu () and
Additional contact information
Zan Yang: Tsinghua University
Shuping Wu: Tsinghua University
Yanhao Shen: Tsinghua University
International Real Estate Review, 2017, vol. 20, issue 1, 23-49
This paper studies the relationships among monetary policy, house prices, and consumption in China from both national and regional perspectives. Using a panel vector autoregression (VAR) model and a counterfactual simulation method, we find that monetary policy has a significant effect on consumption but with a regional pattern, in terms of the magnitude and the housing wealth channel. It is found that in the middle southern and the western cities, the monetary policy has strong effects on consumption while the house prices have minimal contribution to the monetary policy transmission to household consumption. By contrast, in the Tier-1 and the eastern cities, house prices play a more important role in monetary policy transmission; even household consumption is less sensitive to monetary policy changes.
Keywords: Monetary Policy; Housing Price; Household Consumption; VAR; Chinese Regional Market (search for similar items in EconPapers)
JEL-codes: L85 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://www.umac.mo/fba/irer/papers/current/vol20n1_pdf/02.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ire:issued:v:20:n:01:2017:p:23-49
Ordering information: This journal article can be ordered from
Asian Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA
Access Statistics for this article
International Real Estate Review is currently edited by Professor Ko Wang, Professor Hongyu Liu and Professor Rose Neng Lai
More articles in International Real Estate Review from Asian Real Estate Society Asia Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA.
Bibliographic data for series maintained by IRER Secretary Office/Webmaster ().