Global warming and extreme events: Rethinking the timing and intensity of environment policy

Michael Funke, Yu-Fu Chen and Aaron Mehrota ()

Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics

Abstract: 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 period 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 theoretical model.

Keywords: Consumption; House Prices; China; Panel Data (search for similar items in EconPapers)
JEL-codes: C23 E21 O53 R31 (search for similar items in EconPapers)
Date: 2011-05
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.uni-hamburg.de/fachbereiche-einrichtung ... t/makro/mehrotra.pdf (application/pdf)

Related works:
Working Paper: Global Warming and Extreme Events: Rethinking the Timing and Intensity of Environmental Policy (2010)
Working Paper: GLOBAL WARMING AND EXTREME EVENTS: RETHINKING THE TIMING AND INTENSITY OF ENVIRONMENTAL POLICY (2010)
Working Paper: Global Warming And Extreme Events: Rethinking The Timing And Intensity Of Environmental Policy (2010)
Working Paper: Global warming and extreme events: Rethinking the timing and intensity of environment policy (2010)
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:ham:qmwops:21105

Access Statistics for this paper

More papers in Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().