The Research On The Impact Of Housing Prices And Housing Wealth On Household Consumption In Urban China

At the same time as the rapid development of China's economy,some problems have also emerged.The continuous rise in housing prices and the lack of domestic demand have begun to constrain the development of the economy.How to expand the effective demand of domestic residents and control the rapid rise in housing prices is the focus of the current macro-control work of the Chinese government.In this context,studying the impact of house prices and housing wealth on household consumption can provide some reference for the government to implement price control policies.This paper uses data from China and the Chinese Family Panel Studies(CFPS)in 2010 and 2014 to construct unbalanced short-panel data,we use the two-way fixed-effect model of panel data to study the effects of house prices and housing wealth on urban household consumption This paper empirically studies the impact of house-housing household wealth on consumption and its differences.It also studies the impact of house prices on household consumption and the effects of this difference,and explains it from the perspective of house prices affecting family purchase behavior;furtherly we study the impact of housing prices on the wealth effect of housing.The main conclusions of the paper are as follows:For households with housing,there is a significant housing wealth effect on total consumption and non-durable goods consumption.The coefficient of elasticity of financial assets is less than the coefficient of elasticity of housing wealth.Housing wealth effect is more obvious in families with higher purchasing power and higher income;housing wealth effect is not significantly different between multi-house and single-house family;wealth effect of young and middle-aged families are significantly greater than those of older families,and youth families' housing wealth effect is even greater.The increase in house prices has inhibited the total household consumption and non-durable goods consumption,and has no effect on household durable goods consumption The rise in house prices mainly affects households with low purchasing power and low income levels.Households with low purchasing power and low income levels are more affected by the negative impact of house prices.The increase in house prices has a stronger inhibitory effect on the total household consumption.The rise in housing prices in China has an impact on families of all ages.It affects not only young families,but also middle-aged families and elderly families.All citizens are reducing consumption.In addition,rising house prices have a greater inhibitory effect on the household consumption of unmarried men.Rising house prices increase the incentive for home buyers,and households with houses have reduced the tendency of families to purchase houses.