The Study Of The Real Estate Wealth Effect In China Based On Regional Economic Scale

With prices rising, buying a house has become “the third distribution of income” ofChinese residents. The high prices has affected the changes in the structure ofconsumption, the study of the real estate wealth effect of China has importantsignificance. The paper uses VAR model and error correction model to study theexistence of the national real estate wealth effect and the analysis of different effect sizeof the real estate wealth effect; and uses panel data model to study the difference of thereal estate of the country’s30provinces (cities, districts); Sort by GDP in groups tostudy the real estate wealth effect of different economies of scale. The conclusions areas follows: China’s long-term real estate wealth effect significantly, the short term is notsignificant;30provinces (cities, districts) nationwide real estate wealth effect is quitedifferent; provinces in groups of the same level of economies of scale not play theleading role of regional economies of scale. And the reasons for these results arediscussed, in order to more fully analyze the relationship between house prices andconsuming. And put forward some recommendations for the current problems at last.