What drives urban consumption in mainland China?: The role of property price dynamics
Michael Funke and
No 13/2011, BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition
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 pe-riod 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 theo-retical model. Keywords: Consumption, house prices, China, panel data JEL-Classification: E21, R31, C23, O53.
JEL-codes: E21 R31 C23 O53 (search for similar items in EconPapers)
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Published in Published in Pacific Economic Review, Volume 22, Issue 3, August 2017: 383–409
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Journal Article: What Drives Urban Consumption in Mainland China? The Role of Property Price Dynamics (2017)
Working Paper: WHAT DRIVES URBAN CONSUMPTION IN MAINLAND CHINA? THE ROLE OF PROPERTY PRICE DYNAMICS (2011)
Working Paper: What drives urban consumption in mainland china? The role of property price dynamics (2011)
Working Paper: What Drives Urban Consumption in Mainland China? The Role of Property Price Dynamics (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:bof:bofitp:2011_013
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