The Study Of China’s House Prices On Consumption

Investment, exports, and demand is to promote a country’s economic growth in three carriages. In our case, a long time, economic growth over-reliance on exports and investment, sluggish domestic demand is a major problem plaguing economic development. Western scholars believe that the residents’ income and wealth stocks are the main factors to affect the consumer. With the continued growth of house prices over the past few years, real estate has become the most important wealth of Chinese residents, and therefore of great significance to study the volatility of real estate prices impact on consumer.First of all, of the five transmission channels of the real estate wealth effect in accordance with Ludweig and Slok, using a modeling approach to real estate price volatility affecting consumer theoretical research; study found that real estate price volatility on the consumer by roomprice income ratio, down payment loans ratio, income gap, the traditional consumption habits, real estate and tertiary markets to improve the factors of the extent of the housing finance market conditions in China in the status of these factors determine our price fluctuations on consumerThe practical effect was weaker than in developed countries.Secondly, the use of quarterly data for2007-2011to an empirical analysis of the impact of China’s housing prices on consumption, found that China’s housing prices has a stimulating effect on consumption, but this effect is relatively weak, this result is verifiedforecast.Finally, according to the foregoing analysis of influencing factors, the six policy recommendations, including:to narrow the gap between the rich and the poor, the establishment of a multi-level housing supply structure, reasonable regulation of real estate prices, improve real estate and tertiary markets, housing finance market and a reasonable guide residents consumption habits.