Research On The Wealth Effect Of Urban Housing Price In China

With the development of the times and social progress,our country gradually leaves from richness to strong.In this process,we need to learn from the experience and lessons,optimizing the power of economic growth,changing the mode of economic development.Only in this way can we solve the unbalanced and inadequate problem which appeared in the progress.On one hand the real estate can make the rest of residents,on the other hand,it can also be used as assets,and the residents can make fortune.The wealth effect of real estate is refers to its own price changes lead to household wealth variation,and it can affect household consumption by pathways Compared with China's booming real estate market,the public consumption is not high.How to release residents' consumption potential has attracted wide attention from all walks of life.In the current context,it is of great significance to think about the wealth effect of real estate and put forward reasonable suggestions.According to the previous research on the wealth effect of the real estate,we found that consumption has heterogeneity with housing prices.There are three main points:first,the price rise in resident consumption makes the wealth effect increase;second,rising prices lead to consumption reduced;third,the change of housing prices can not affect household consumption in a significant way.The scholars mainly consult the stock wealth effect to explain the wealth effect of the real estate?On the basis of research of Wang Zilong,this article put forward the wealth effect of real estate.Considering consumers' motivation and behavior factors,this paper give a conduction path to explain the wealth effect of the real estate through the graphical visualization.The ownership of house and the willingness to improve the living standards of housing are included in this path.The paper also established the econometric model one the basis of LC-PIH theoryNow,china's development is unbalanced,such as economic development,city construction,health care,education,and different industrial policy.These factors lead to a variety of questions of real estate wealth effect.Chinese scholars research the wealth effect of the real estate by the position,for example,the overall level of the country,the East,West,Central section.And then they put forward suggestions for different areas.However,the western city development increased significantly in recent years.They have approached even exceeded the East and central in some ways.If we continue to study the heterogeneity of the wealth effect can not reflect the latest changes.Therefore,I focus on price income ratio of 34 large and medium-sized city in 2011-2014,and make the classification these cities.At last,I make an empirical study on this question.In order to research the problem of heterogeneity on the wealth effect of the real estate,the 34 large and medium-sized city annual data and the panel fixed effect model are used in this paper.Firstly,disposable income,consumption and housing prices of urban residents in 34 large and medium-sized city are chosen as the core variables on the wealth effect.Secondly,urbanization rate,the proportion of the third industry to GDP and the natural growth rate of population are chosen as control variables for researching the impact on the real estate wealth effect was observed.From the empirical analysis we can find that:(1)housing prices have a negative wealth effect on household consumption in resent years and the negative wealth effect is different because of housing burden;(2)For the high degree of housing burden city,even if the housing burden goes down,but they still exist crowd-out effect on consumption;(3)On one hand,the construction of urbanization can reduce the negative wealth effect of the real estate,on the other hand,it also has negative effects on residents;The development of the third industry,open family planning has a positive effect on lessen crowed-out influence on consumption.According to the real estate wealth effect conduction path,empirical analysis conclusion,around how to play the real estate positive wealth effect and reduce the burden of the residents of these two aspects,put forward specific suggestions.Based on the previous research,the innovation of this paper lies in the following two aspects:first,I study on the wealth effect of the real estate in the housing price burden not the geographic location.On this basis,This paper focuses on reducing affordable housing of residents.And then,the paper put forward the reasonable advice from improving the income of residents and increasing house supply;Second,the conduction path of real estate prices was further improved in consideration of consumer psychology and behavior factors.However,there is still defects in this paper.First,this paper only consider the price to income ratio rises or decreases because of the lack of data.lt can make further refinement to the city and make more specific research Second,it is impossible to apply each conduction path in the theoretical analysis to the empirical analysis because of the incomplete data.With the construction of China's statistical system continues to improve,these problems will be made up in the future,it can provide more help for the research on this problem,and then put forward the suggestions more beneficial.