Study On The Interactive Relationship Between Income And House Price-a DSGE Framework

Since the reform and opening up, China’s real estate market got rapid development, It has played a very important role in satisfying people’s demand for housing、promoting economic development、increasing employment and improving residents’ income. But because of the lack of investment channels and speculative demand,it has risen the house price.A soaring housing prices is not conducive to the development of the real estate market, but also affects the basic needs of the population and economic stability.Basically, increasing the income of residents, especially the disposable income is the first task of meet residents’ housing demand. Based on this, the research of the relationship between house prices and household income and its fluctuation, in order to guarantee the housing needs of the residents will have very important theoretical and practical significance.This paper introduces the development of the real estate market in China, its features and relevant data, on the basis of building contains a typical family, vendors, and the central bank’s three departments dynamic stochastic general equilibrium model.The stability of associated with Eviews6.0 and impulsive effect analysis, describes the income shocks, house prices impact on the influence of other relevant variables, the results show that after a positive impact on income, housing prices in the third period and later will have a positive reaction, there is a delay; A positive impact, which can have a dilution effect on residents’ wealth, income to house prices is negative in the late early positive response. And through variance decomposition, found that the contribution rate of income on prices showed up after then, the process of the highest proportion of 49%. Using MATLAB software to analyze dynamic stochastic general equilibrium model, the results show that the fitting model and the real economy degree is higher, more clearly shows that the dynamic relationship between house prices and income. Put forward to improve residents’ income, improve the housing tax system reform, etc. And advice.