The regional house prices in China: Ripple effect or differentiation

Ling Zhang, Chi Man Hui, Haizhen Wen

Research output: Journal article publicationJournal articleAcademic researchpeer-review

16 Citations (Scopus)

Abstract

The metropolitans are divided into panels by spatial location and regional economic level. The empirical results show that prices in most regions are generally consistent with the national average, but they have different responses to changes in national fundamentals. Particularly, there is a clear differentiation in North China and East China from other regions, as well as the region of a higher level economic development. Furthermore, the findings from Granger test and impulse response function with VAR model indicate that those regions are the source where a ripple effect is from. And the diffusion path is very clear between economic regions. This study has provided a better understanding of the formation and transmission of the ripple effect of house prices across regions and also important implications for central and local governments over market changes.
Original languageEnglish
Pages (from-to)118-128
Number of pages11
JournalHabitat International
Volume67
DOIs
Publication statusPublished - 1 Sep 2017

Keywords

  • Coefficient heterogeneity model
  • House price
  • Ripple effect
  • Structure differentiation
  • VAR model

ASJC Scopus subject areas

  • Urban Studies

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