Empirical Research On Economic Growth,Income Gap And Real Estate Prices

As a pillar industry of the national economy,on one hand,the rise and fall of real estate affect the development of the national economy.On the other hand,it directly relates to residents' all aspects of daily life.As daily necessities,it determines the living standards of residents;as investment products,it determines the ability of residents to create wealth.Real estate prices continue to rise,the rich obtain huge profits through the investment in real estate.The ordinary residents want to buy housing through long-term savings,but inflation makes their wealth shrink,resulting in ‘the rich become richer,the poor become poorer'.This relates to a key point of people's livelihood-the gap between rich and poor.This paper selected data of 26 provinces in 2000-2014 as a sample.First check the stationary of panel data with unit root test.Then establish a panel vector autoregressive model,impulse response function and variance analysis to study the relationship between economic growth,income inequality,and housing prices.Found that economic growth and income inequality are important factors of price fluctuations.And because house price has spatial correlation,then establish a spatial panel auto-regression model for further studies of the relationship of the three.Results showed that house price has significant positive correlation.Due to unbalance of regions' development,city conditions have obvious geographical difference,like western region conditions behind eastern coastal developed city.So house price distinguishes obviously;the effect degree of different areas is different.Among the studied 26 provinces,50% promote the house price.The other 50 % have inhibitory effect on house prices.Finally,combining with the relationship of economic growth,income inequality and house price,this paper put forward policy recommendations.