Trans-regional Influence of Housing Prices on Household Consumption: Empirical Analysis Based on the Spatial Panel Data of 332 Cities in China

Authors: Yanfen Huang*, Renmin University of China
Topics: Economic Geography, Regional Geography, Development
Keywords: Housing wealth effect; housing prices, household consumption, spatial correlation,spatial Durbin model
Session Type: Paper
Day: 4/9/2020
Start / End Time: 1:45 PM / 3:00 PM
Room: Capitol Ballroom 5, Hyatt Regency, Fourth Floor
Presentation File: No File Uploaded

A theoretical framework of the trans-regional influence of housing prices on household consumption, which has not been adequately discussed in previous literature, is proposed based on housing wealth effect theory. Then the Spatial Durbin Model is adopted to examine the regional heterogeneity of housing wealth effect and the trans-regional influence of housing prices on household consumption based on the panel data of 322 cities in China from 2000 to 2013. The empirical results show that the trans-regional effects of housing prices on household consumption are distinct across different cities. Housing prices in eastern and core cities significantly and positively affect the household consumption of neighbor cities, whereas periphery cities significantly and negatively affect neighbor cities.

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