| ID | 127773 |
| Title Proper | Income elasticity of housing demand in China |
| Other Title Information | micro-data evidence from Shanghai |
| Language | ENG |
| Author | Chen, Jie ; Jin, Minzhou |
| Publication | 2014. |
| Summary / Abstract (Note) | Since 1998, the Chinese housing market has played a fundamental role in driving macroeconomic stability and economic growth. This paper attempts to estimate the income elasticity of housing demand in Shanghai based on a household survey conducted by the National Bureau of Statistics of China in 2007. We utilize a two-stage model, which integrates analysis of both tenure choice and housing demand. Our findings indicate that both permanent and current income has significant influence on tenure choice in Shanghai, and that owner-occupiers' permanent income elasticity of housing demand in Shanghai is between 0.375 and 0.447. Our research also suggests that migrant homeowners have higher permanent income elasticity than Shanghai natives and that most Chinese households are liquidity constrained with regards to obtaining homeownership. We also find that permanent income elasticity increases with age. Finally, the existence of an urban-rural and regional difference is shown. |
| `In' analytical Note | Journal of Contemporary China Vol.23, No.85; January 2014: p.68-84 |
| Journal Source | Journal of Contemporary China Vol.23, No.85; January 2014: p.68-84 |
| Key Words | Micro Finance ; Housing Finance ; Housing Demand ; Living Standards ; Urbanization ; Shanghai ; China ; Chinese Economic ; Financial Policy - China ; Economic Growth - China ; Economic Control - China ; Real Estate Industry - China ; Policy Implementation - China ; Chinese Politics ; Income Elasticity ; Micro Data Evidence ; Micro Economics |