Spatial Characteristics And Regional Differences Of The Impact Of Housing Prices To Resident Consumption

Housing as a special commodity,not only has the property of consumer goods,but also held as an asset by the household sector.In terms of asset values,housing prices rising improves the level of wealth of residents.Meanwhile,The contribution of consumption to economic growth in China is for a long time at low levels,and the house prices rising in China in recent years didn't drive the level of consumption up.So it is of great significance to explore the relationship between house prices and consumption level in our country.From the theoretical perspective,it can grasp the internal transmission channel of housing price to influence consumption,through the study of residents' consumption function and consumption theory as well as the generation mechanism of real estate wealth effect.From the practical perspective,the residents in our country has a special taste on housing,and the saving in order to buy a home of a family may crowd out the consumption.Besides,housing property is inseparable,and the development of financial market in our country is imperfect,as house prices rise,family cannot realize their wealth by selling part of the house,real wealth value does not increase,in addition the unreasonable rise of house prices exacerbate inequality of wealth distribution in our country,resulting in a decline in the marginal propensity to consume of the residents,thus the domestic demand slumps.This article first reviews the theory of the influence of house prices on consumer,finding that the final effect house prices on consumption depends on the relative size of wealth effect and the extrusion effect.The research on high housing prices in China's shows that our country the existence of housing bubble will hinder the healthy development of the economy in our country from all sides.The existing research uses macroscopic or microscopic data,mostly to conclude that the housing price increase has a crowding out effect on consumption,or the wealth effect of housing price on household consumption has a threshold.For the low consumption of our country,the existing research often carries out from the saving preference of residents or population structure in our country which as a historical perspective,other studies begin to focus on a "space" perspective,discussing regional unbalanced development in our country,the income gap,and labor resources flow's influence on the level of consumption.On the basis of summarizing,the research of the relationship between house prices and consumption levels should take the spatial correlation of variables in consideration,then we can grasp the relationship of the two more accurately in the empirical research.The space econometric considers the spatial dependence and spatial heterogeneity of variables in compare with the traditional econometric,and provides an appropriate measurement tools for the study of this paper.In the empirical research part,this paper collects the annual economic indicators of the provinces and builds panel data for research.The descriptive statistics of the whole data shows that the development of the eastern provinces in our country is better than the central and western provinces in various aspects,showing agglomeration of high income and high consumption level,high house prices and the high level of market in the eastern provinces.The global spatial correlation and local spatial correlation test results of data of house prices and consumption level show that both exists significant spatial auto-correlation,so we need to add spatial factors in our econometric models.In this paper,the spatial auto-correlation model is applied on the basis of prior and post test of model selection.Afterward,we build spatial Durbin model for further examination of the changes of consumption level and the level of house prices in China caused by the direct,indirect and the overall spatial effect,then important conclusions are drawn.This paper draws some conclusions on the theoretical and empirical research:(1)Nationwide,there were significantly positive correlations between different provinces in the residents' consumption in our country;from the perspective of the local spatial agglomeration of consumption,the eastern coastal provinces are mainly characterized by high levels agglomeration of consumption,while central and western provinces is mainly for low agglomeration consumption.(2)Across the country,the spatial correlation of house price is significant;from the point of local space characteristics,the eastern coastal provinces and cities shows concentration of high levels of housing prices,the central and western regions in the same way have low house prices concentrated,and the inland provinces adjacent to eastern coastal provinces shows the gap in price level and increase with the coastal provinces.(3)Nationally,the increase in home prices stimulates residents' consumption,at the same time,economic environment also plays a significant role in all aspects of positive or negative correlation with the level of consumption.By building the SDM of house prices and consumption level,we found that the impact of property prices on the level of consumption in different regions have significant differences.This paper puts forward relevant policy suggestions for the development of different regions in China,due to the large spatial difference of China's economic development.(1)For the eastern region,we should control the rise of housing prices,besides,save the living cost of urban residents and increase the consumption level of residents by lowering the obstacle of population movement and rational planning.(2)For the central and western regions,we should gradually reduce the stock of real estate,formulate reasonable development policies according to the comparative advantage of different provinces there,and realize balanced economic development nationwide.(3)We should expand domestic demand by all means in the whole country.