How do housing price and sentiment affect consumption distribution in China?

Eddie C.M. Hui; Zhaoyingzi Dong; ShengHua Jia

doi:10.1016/j.habitatint.2018.01.001

How do housing price and sentiment affect consumption distribution in China?

Eddie C.M. Hui
, Zhaoyingzi Dong^*
, ShengHua Jia

^*Corresponding author for this work

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

31 Citations (Scopus)

Abstract

Considering the lack of exploration of housing market sentiment in previous work, this paper uses quantile regression for panel data (QRPD) to investigate how housing price and housing market sentiment affect non-housing consumption distributions among owners and renters during their life cycles in China. The results show that the positive effect of housing price on consumption is stronger at the higher and lower parts of the distribution, and the differences caused by ages are more significant for owners. Furthermore, the housing market sentiment plays a significant role in owners’ and highest-consuming renters’ consumption. The heterogeneities in QRPD results suggest that the least square method provides less information. This study offers practical implication for governments in conducting different housing policy strategies for different households so as to help households benefit from the development of housing market and hence increase social welfare and equality. © 2018 Elsevier Ltd

Original language	English
Pages (from-to)	99-109
Journal	Habitat International
Volume	77
DOIs	https://doi.org/10.1016/j.habitatint.2018.01.001
Publication status	Published - 1 Jul 2018
Externally published	Yes

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 11 Sustainable Cities and Communities

Research Keywords

Consumption
Home ownership
Housing price
Life-cycle pattern
Quantile regression for panel data(QRPD)
Sentiment

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10.1016/j.habitatint.2018.01.001

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Cite this

@article{8e064cb9b80347c982f966d5dd02e2ee,

title = "How do housing price and sentiment affect consumption distribution in China?",

abstract = "Considering the lack of exploration of housing market sentiment in previous work, this paper uses quantile regression for panel data (QRPD) to investigate how housing price and housing market sentiment affect non-housing consumption distributions among owners and renters during their life cycles in China. The results show that the positive effect of housing price on consumption is stronger at the higher and lower parts of the distribution, and the differences caused by ages are more significant for owners. Furthermore, the housing market sentiment plays a significant role in owners{\textquoteright} and highest-consuming renters{\textquoteright} consumption. The heterogeneities in QRPD results suggest that the least square method provides less information. This study offers practical implication for governments in conducting different housing policy strategies for different households so as to help households benefit from the development of housing market and hence increase social welfare and equality. {\textcopyright} 2018 Elsevier Ltd",

keywords = "Consumption, Home ownership, Housing price, Life-cycle pattern, Quantile regression for panel data(QRPD), Sentiment",

author = "Hui, \{Eddie C.M.\} and Zhaoyingzi Dong and ShengHua Jia",

note = "Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].",

year = "2018",

month = jul,

day = "1",

doi = "10.1016/j.habitatint.2018.01.001",

language = "English",

volume = "77",

pages = "99--109",

journal = "Habitat International",