Cart (Loading....) | Create Account
Close category search window
 

The impact of house price volatility on China's economy based on VAR model

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

2 Author(s)
Guodong Li ; Coll. of Math., Yunnan Normal Univ., Kunming, China ; Yuanchang Wang

Using VAR Model, this paper constructs a dynamic relationship system among house prices, price level, economic growth, monetary policy and unemployment rate. Discussed the impact of house prices fluctuation on some of china's key economic variables, especially monetary policy. Granger causality test showed that the price fluctuations is the Granger reason which changes monetary policy, economic growth and price level. According to the analysis of VAR (2) model, house price increase has some impact on china's economy: money supply increase, higher price level, slower economic growth, and higher unemployment rate in the long run. The positive impact of the higher- rising house prices forces the central government to adopt an expansionary monetary policy, which in turn causes much higher price. Variance decomposition analysis showed that the house price fluctuations on the impact of monetary policy, the lagged effects of the existence of about three months. It proves through the polynomial AR of the calculating model that VAR (2) model is stable, that is, China's economy can develop smoothly and orderly through the automatic adjustment of the market and the macroeconomic control of the government.

Published in:

Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), 2011 2nd International Conference on

Date of Conference:

8-10 Aug. 2011

Need Help?


IEEE Advancing Technology for Humanity About IEEE Xplore | Contact | Help | Terms of Use | Nondiscrimination Policy | Site Map | Privacy & Opting Out of Cookies

A not-for-profit organization, IEEE is the world's largest professional association for the advancement of technology.
© Copyright 2014 IEEE - All rights reserved. Use of this web site signifies your agreement to the terms and conditions.