This paper uses the classical and easy-to-understand
Vector Auto-regression Model Method to study the impact of economic and
monetary policy variables on the residential
property market in Macau. By using sample monthly data from Jan. 2005 to
May 2021, the empirical results show the dynamic relationship among the
residential property value, key economic and monetary variables. Furthermore, adopting the Granger causality test, generalized impulse response function,variance
decomposition and co-integration test of the corresponding VAR specification,
the tables and graphs clearly explain the
residential housing value has a positive relationship with the gambling gross
income; it has a negative relationship with the unemployment rate; it has a positive
relationship with the money supply; it has a negative relationship with the
consumer price index. Finally, this paper gives five policy actions to help
government stabilize the residential property market in Macau and make it
healthy develop.
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