By using panel data of 31 provinces or cities during 1998-2012 in China, this paper measured the housing market demand elasticity. Different from the previous related research, we considered the impact of housing price expectations on housing demand and distinguished between the housing consumption demand price elasticity and investment demand price elasticity. The results showed that there were differences in different regions on housing market demand elasticity such as price elasticity of housing consumption demand, price elasticity of housing investment demand and housing demand income elasticity, etc. The results could provide useful suggestions on regulating the real estate by the Chinese government.
References
[1]
Shen, Y.Z. (2007) Analysis of Housing Consumption Demand Elasticityabout China’s Urban Residents. Economics and Management, No. 3, 78-80.
[2]
Liang, Y.F. and Gao, T.M. (2006) An Empirical Analysis of the Cause on The Fluctuations in Commodity Housing Sales Price in China. Management World, No. 8, 54-56.
[3]
Cong, Y. (2014) Regional Differences in Housing Demand Elasticity in China—Based on The Empirical Analysis of Provincial Panel Model. Price Theory and the Practice, No. 3, 62-63.
[4]
Kuang, W.D. (2010) Expectation, Speculation and Urban Housing Price Volatility in China. Economic Research, No. 9, 69.
[5]
Wang, J.M. and Gao, T.M. (2004) Dynamic Analysis of Supply and Demand Function in Chinese Real Estate Market. China Soft Science, No. 4, 90-92.
[6]
Chow, G.C. and Niu, L.L. (2010) Housing Demand and Supply of Urban Residents in China. Journal of Financial Research, No. 1, 36-38.
[7]
Zhu, J.J., Lu, H.X., Zheng, S.Q. and Li, L. (2014) Analysis of Urban Housing Demand: Method, Data and Model. The City Planning, No. 38, 147.
[8]
Lucas Jr., R.E. (1972) Expectations and the Neutrality of Money. Journal of Economic Theory, 4, 103-124.
http://dx.doi.org/10.1016/0022-0531(72)90142-1
