The Impact of Inflation on Chinese Housing Bubble: Empirical Study Based on Provincial Panel Data

GAOFENGMU (고풍목); Fan, Gang Zhi (판강지); ZHANG YANYAN (장연연)

The Impact of Inflation on Chinese Housing Bubble: Empirical Study Based on Provincial Panel Data

Korea Real Estate Review
2017, 27(1), pp.33-44
Publisher : korea real estate research institute
Research Area : Social Science > Law > Law of Special Parts > Law of Real Estate
Published : March 31, 2017

GAOFENGMU ¹, Fan, Gang Zhi ¹, ZHANG YANYAN ¹

¹건국대학교

Accredited

ABSTRACT

The continuously rising housing prices in major Chinese cities have raised question about whether inflation is the main reason to drive up housing price to skyrocket in recent years. Based on the provincial panel dataset of China from 2006-2014, this paper investigates the impact of inflation on Chinese housing markets within the frameworks of both static and dynamic panel data models. Our empirical results show evidence that inflation has indeed been a main force of accumulating housing bubbles in these housing markets, especially in eastern region of China. We also find an interesting phenomenon in which Chinese housing bubble is, to a certain extent, affected by market self-adjustment mechanism.

KEYWORDS

Chinese housing bubble, inflation, panel data, dynamic model

Citation status

* References for papers published after 2023 are currently being built.

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