Research On The Regional Difference Of Housing Wealth Effect

Since the commercialization of housing in 1998,housing prices in China have experienced a rapid growth process.On the one hand is the soaring housing prices,on the other hand is declining consumption,China's consumption rate over the past ten years has been in a downward trend,compared with the developed countries are still at a low level.In the background of rising house prices,sluggish consumption and China's economic development has entered a new normal under the discussion of consumer price fluctuations of the influence and behind the economic mechanism for building a long-term mechanism to expand consumer demand and success across the "middle-income trap" is of great significance.Also,due to the huge difference in the level of economic development of our country area,housing wealth effects caused by changes in housing prices often have strong regional characteristics,regional differences in housing wealth effect has posed great challenges to the development of price regulation and real estate policy,regional differences and in-depth study of housing wealth effect and the reasons are very important for according to the regulation policy.In this paper,the theory of consumption economy and housing wealth effect based on the theory of macro annual data using 35 large and medium-sized city in2004-2014 years,with the help of FMOLS and the panel threshold regression panel data model of China's city housing wealth effects and differences in more than 10 years since the housing reform.The main conclusions are as follows:(1)overall,the empirical results show that housing wealth effect is positive,shows that the housing wealth effect can have a positive effect on consumption;(2)from the regional perspective,there are significant differences in eastern central and western city's housing wealth effect,the eastern city's housing wealth effect is strongest,the western city's is the next one,and housing wealth effect in central city is not significant negative;(3)the threshold panel regression results show that under different economic development levels.there are obvious differences in housing wealth effect,shows that price changes brought by housing price change has an interval effect on the consumption of residents.Because of the degree of urban economic development,housing wealth effect will gradually weaken,this phenomenon is related to the level of urbanization and economic development.This paper analyzes the existence of housing wealth effect in every large and medium-sized cities since the housing reform in China,especially the regional differences.According to the shortcomings of the existing literature geographical area to divide the sample based on the subjective,city real per capita GDP level as the threshold variable,to examine the difference in the level of economic development by influencing the panel threshold regression of housing wealth effect;the paper collected the relevant economic data of 35 large and medium-sized city,constructing a panel data model,using FMOLS model to solve the endogeneity problem which may exist,the estimation result is more accurate,the empirical results more persuasive.