The heterogenous impact of fluctuation of housing prices upon consumption of urban households in China
The heterogenous impact of fluctuation of housing prices upon consumption of urban households in China
This paper found that the increase in housing prices can significantly promote the consumption of urban households with housing in China. And the promotion effect increases with family’s net finance asset, i.e., the richer the families are, the more their spending rises. For the urban families without housing, the increase in housing prices inhibit their consumption. When housing prices rise by 1%, the consumption drop by 0.748%. The mechanism is that the increase in housing prices reduce the ho