Study On The Regional Heterogeneity Of Real Estate Market By Financial Variables Shocks

As a pillar industry of our national economy, the fluctuation of the real estate industry has a great influence on the macro economy. A large number of empirical facts and theoretical and empirical research shows that financial variables on the real estate market existed in different directions and different degrees of impact, and the real estate market is a market with regional characteristics, influence caused by the impact of the financial variables of each area of the real estate market is not the same. Based on such a background, is of great significance to the channels and mechanisms for effects of financial variables on real estate variables, monetary policy intervention prices and other asset prices and financial variables in various regions of China’s real estate industry regional effects and so on a series of questions, the significance, this study focuses on the different effects of China’s regional real estate market caused by changes in the financial environment in our country.The empirical research is based on PVAR model, using China’s quarterly data of 2004 to 2014, to study Regional heterogeneity impact of the monetary supply, interest rate on three regional real estate market and we analyzed in detail the causes, due to the consideration of the single financial variable is not sufficient for describing a country’s true financial condition, this paper further construct a financial conditions index (FCI) to characterize the financial situation, in which interest rates, exchange rates, stock prices and house prices and money supply amount are considered in, and house prices’ responses from FCI’s shocks and house prices’ responses from single financial variable’s shocks were analyzed and compared.The main contents and conclusions of this paper are as follows:first, our country monetary policy can really play a role in the regulation of house prices but there is a delay and elasticity. Second, China’s financial variables impact on prices exist regional heterogeneity effect; third, different monetary policy tools have different effects to the house price and control of a single financial variables of monetary policy will have a greater influence on the house price, and tracking the FCI monetary policy will reduce the impact on house prices. Finally, the relevant policy recommendations are put forward based on the combination of qualitative and quantitative analysis.