The Research On Influence Of Housing Price's Fluctuation On Consumption

Under the social background of housing price's rising continually, housing consumption being a social problem and consumption insufficiency with high saving coexisting in our country,this thesis studies the general mechanism that housing price's fluctuation influences consumption through the microcosmic and macrocosmic angles, and tries to provide a new method for studying the relationship between asset price and consumption.The microcosmic research starts with asset choice and consumption theory, allowing for the double property of real estate, analyzes the channel and mechanism of housing price's fluctuation which impacts the decision-making on household consumption through influencing their asset choice and consumer confidence. We conclude that high housing price has more and more negative influence on consumer confidence and consumption. We try to explore housing-consumption's relation with consumer equilibrium indifferent curve analysis and family bequest motivation and positional consumption, and compare in detail the characteristic and influencing factors of real estate and stock wealth. This investigation helps us to understand profoundly the complex connection between real estate, stock wealth and residential consumption.The macrocosmic research not only explores the relationship between housing price's fluctuation, consumption and macroeconomic growth, but also analyzes the effect of monetary policy and currency appreciation making on relationship between housing price's fluctuation and consumption. Our result shows that monetary policy has important influence on housing price's fluctuation and it is one significant transmission channel of housing-consumption's relationship. The mechanism and demonstration on that exchange rate fluctuation and international capital flow arises housing market bubble makes it clear that housing price's fluctuation impacts consumption more complicatedly and deserves more attention.We try to put forward"Inverted-U Hypothesis"about the relationship between housing price's fluctuation and consumption on the basis of analyzing micro and macro-mechanism and demonstration, explore reasonable areas of housing price's fluctuation in favor of promoting consumption and economic growth in order to provide theoretic guide and demonstration support for government's supervision on housing market. It also offers a new method to control housing market in consumption angle.