IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v52y2016i2p461-474.html
   My bibliography  Save this article

Leverage, Consumer Finance, and Housing Prices in China

Author

Listed:
  • Ye Guo
  • Wenbin Xu
  • Zhiyuan Zhang

Abstract

In this article, we focus on the effect of household borrowing behavior on housing prices in China, under the background of rapid growth of consumer finance during the past decade. We build a micromodel to deduce the relationship between consumers’ leverage, housing enterprises’ leverage, and housing prices and use a dynamic panel model and panel error correction model to do the empirical work. The results show that the first- and second-tier cities of China are greatly influenced by leverages, the second-tier cities also by local growth, and the third-tier cities are weakly affected by leverages but greatly affected by the land prices. Further explanations and discussions of the empirical results are given accordingly.

Suggested Citation

  • Ye Guo & Wenbin Xu & Zhiyuan Zhang, 2016. "Leverage, Consumer Finance, and Housing Prices in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(2), pages 461-474, February.
    • Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:461-474
    DOI: 10.1080/1540496X.2016.1110462
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2016.1110462
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2016.1110462?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jia Li & Rachel Tochen & Yaning Dong & Zhuoran Ren, 2022. "Debt-Driven Property Boom, Land-Based Financing and Trends of Housing Financialization: Evidence from China," Land, MDPI, vol. 11(11), pages 1-23, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:461-474. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.