Study On The Housing Wealth Effect Between Chinese City

Since the housing market reform in1998, the living level got obvious improvement. The per capita housing area increased from18.70square meters in1998to32.90in2012square meters; and more and more family have their own housing. At the same time, housing prices have been gone up, the sale price of the residential commercial housing was1854Yuan in1998, rose to4993Yuan in2011, and is up269.31%. With the house prices continue to rise, on the one hand, the asset appreciates for owner-occupied houses, on the other hand some family would be aggravated in view of the housing pressure. Housing wealth inequality would perform a further wedge between the region and urban family internal, the "Matthew effect" of the urban residential market would be increasingly significant. Therefore, to study the existence、difference and its mechanism action of the housing wealth effect would provide theoretical basis for the government regulation of the housing policy and promote the economic and the social harmonious development and improving the life happiness for Chinese urban family.This paper focus on the following three questions:first, whether there is the housing wealth effect-reduces the precautionary savings motive or occupies the non-housing consumption; Second, whether there is different about the housing wealth effect in different residential property, residential access, age, income level, areas and period; Third, the housing have the dual nature of consumer goods and investment assets, in consideration of the precautionary savings motive and the liquidity constraints, the wealth effect may be different. The full text is divided into five parts. The first chapter is the introduction, and mainly introduces the research background and research significance, on the basis of review of literature at home and abroad, thus expounds the innovation of this article. The second chapter introduces life cycle permanent income theory and the housing wealth effect theory, then the mathematical model and housing wealth effect is derived. The third chapter comes from the macroscopic angle, on the basis of the35large and medium cities about the1998-1998annual Data, using the Panel Data model to analyze the existence and the regional differences and period of the housing wealth effect. The fourth chapter embarks from the micro perspective, using the2010Chinese household financial data analysis, the existence of the housing wealth effect, diversity, and the transmission mechanism. Finally on the basis of empirical analysis gives the corresponding policy recommendations.Main conclusions are:(1) from macro level, the housing wealth effect exist but performance is weak of the35large and medium cities, and housing wealth effect of regional difference and time difference are big. Eastern cities have the housing wealth effect, the crowding effect exist but is not significant in central cities, the western cities have obvious crowding effect; Region economy more developed, people income level is higher, the housing wealth effect is bigger, also showed that the "Matthew effect" in urban residential market is significant. In the early of the housing reform, urban residential market had certain crowding effect; After2003, along with the rapidly rising house price, the housing wealth effect appeared gradually; But after the financial crisis, speculative effect from the real estate market and the house prices rising too fast and making the housing wealth effect of the urban residential market gradually decline.(2) From micro level, the housing wealth effect exists but overall performance is weak; Along with increase in housing assets, housing wealth effect also increases accordingly; but expected property price hikes to curb the housing wealth effect in the short term. The housing wealth effect had a great difference in different residential property, residential access, different ages, income level and regions for the urban family. Perfect property rights and legitimate big property can produce more significant residential housing wealth effect; small property housing does not have the housing wealth effect. The housing from market can produce significant housing wealth effect, and the housing from non-market has obvious crowding effect. Housing wealth effect is widespread in the middle households, but the wealth effect is not clear in youth households, and the crowding effect is obvious in elderly family. In economically developed areas and the higher the income level, the housing wealth effect is bigger in the urban households, it suggests that the "Matthew effect" of urban residential market is becoming more and more significant. Housing wealth inequality further widened the gap of the regions and cities within the family between rich and poor. Perfect property rights and legitimate big property housing by lowering the precautionary saving motivation had a more significant housing wealth effect; but failing to ease liquidity constraints to create the wealth effect.