Research Of House Price Influence On Chinese Citizens Consumption Rate

High prices and low consumption rate in China has become an important factor of sustainable economic growth,which affects our country economic stability,social harmony and the potential dangers.To explore how prices affect and influence residents consumption rate and through what main channel in our country,this paper first analyses theory of consumption to influence on house price fluctuations.Based on the average propensity to consume which will be decomposed into residents consumption rate and residents' disposable income as a share of GDP,the product of two factors in this paper,we study how the house price fluctuation by the average propensity to consume and residents' disposable income as a share of GDP to the impact of the ratio of consumption mechanism,this paper discusses how to influence prices and affect residents consumption rate what through the main channels.Theoretical analysis results show that housing price effects on the residents' average propensity to consume is not clearly identified in theory,but prices will reduce the disposable income as a share of GDP,in turn,will reduce the ratio of consumption.Therefore,how prices affect the ratio of consumption as well as the channels through which main way or influence of consumption,cannot be determined in theory,this requires the use of empirical analysis.Based on time series data of 1987-2015 in our country,this paper uses cointegration model,impulse response function of measurement tools such as house price fluctuation is studied respectively on the average propensity to consume and residents' disposable income as a share of GDP,the influence of house price fluctuations and deep insight into the relationship between the residents consumption rate.Early empirical study results show that rising home prices on average propensity to consume a relatively small pull up effect,but the prices will lower the average propensity to consume.Rising prices will reduce the residents' disposable income as a share of GDP.Prices the impact on the residents' average propensity to consume in our country,and the impact on the residents' disposable income as a share of GDP after the superposition of the result: rising prices will have negative impact on the ratio of consumption to,and the prices of the impact of the residents' disposable income as a share of GDP influence dominated.At the end of the paper put forward the policy advice is: continue to strengthen,reasonable price regulation policy to curb property speculation and increase the rigid demand for housing families and low-income housing support;Revitalize the idle housing stock development housing rental market,stable prices,release of residents' consumption potential,and raise the ratio of consumption.