| Based on life cycle-permanent income hypothesis consumption model(LCH-PIH),using the panel data of 31 provincial regions in China to study the effect of housing price fluctuation on household consumption with the panel threshold model.Since scholars differ on the issue that how does the fluctuation of China’s property price affect the consumption of residents,the regional conversion effect is considered in the LCH-PIH consumption model.In this way,we construct a threshold model about how does China’s real estate price changes affect consumer spending.The empirical results show that the effect of housing price fluctuation on household consumption is significant and the wealth effect of housing wealth in China can be positive or negative.With the increase of the housing price income ratio,the impact of housing asset price changes on consumption present alternate "U" shape.With the increase of the per capita housing wealth of urban residents,the impact of the change of housing asset price on consumption is gradually increasing from negative to positive.With the increase of housing price growth,the impact of housing asset price changes on consumption is alternate and present inverted "U" shape.With the gradual relaxation of the credit constraint,the change of housing asset price has a positive and inverted "U" shape.With the increase of income growth rate,the impact of housing asset price changes on consumption is positive and present inverted "U" shape. |
