| Our country's economic development has always relied on the export and investment. The insufficient of our inside demand of consumption is always the bottleneck of the economic growth. With the fast development of our real estate market, real estate has become a more and more important part of our wealth. Thus, the research on the influence of the fluctuation of real estate price to the consumption is critical to both our future real estate market and our economic development.This article is based on related theories about Wealth Effect and Consumers'Behavior. With the combination of theoretical and empirical analysis, it tries to find out the relations between the consumption of China and the real estate price and to testify the existence of the wealth effect of our real estate market. At the same time, due to the huge difference of our country's regional economic development, this article selected 3 provinces as the representative of the west, middle and east area of China and to analyze the difference of the wealth effect for each province. It turns out that, in the long run, wealth effect of our real estate market does exist, but it is not that significant in the short term. And in the regional diversity analysis, we found out that the wealth effect does not exist in GanSu province, as the west representative province of China, while it does exist in JiangSu and HuNan province as the east and middle region's representatives.Based on above conclusions, this article tries to figure out the factors that have some influence on the effect of real estate market to our national consumption. And at last, the article has raised some suggestions on how to develop our real estate market reasonably and how to narrow the difference between our regional development and the income level of residents from different area of China. |
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