IDEAS home Printed from https://ideas.repec.org/a/rfa/aefjnl/v5y2018i1p81-90.html
   My bibliography  Save this article

The Monetary Transmission Mechanism: An SVAR Analysis of the Four Municipalities in China

Author

Listed:
  • Lili Wu
  • Mingxu Li

Abstract

This paper explores the role of housing markets in the transmission of monetary policy shocks across four Chinese municipalities, namely Beijing, Shanghai, Tianjin, and Chongqing. The analysis is based on identification of housing demand shocks, monetary policy shocks and credit supply shocks through a Structural Vector Autoregressive (SVAR) model estimated using monthly data for four cities from July 2005 to December 2015. The empirical results show great differences in the four cities as far as the housing market is concerned. They also indicate that housing plays a stronger role in the transmission of monetary policy shocks in Beijing and Shanghai than in Tianjin and Chongqing. These results are reasonably robust across several model specifications.

Suggested Citation

  • Lili Wu & Mingxu Li, 2018. "The Monetary Transmission Mechanism: An SVAR Analysis of the Four Municipalities in China," Applied Economics and Finance, Redfame publishing, vol. 5(1), pages 81-90, January.
    • Handle: RePEc:rfa:aefjnl:v:5:y:2018:i:1:p:81-90
    as

    Download full text from publisher

    File URL: http://redfame.com/journal/index.php/aef/article/view/2839/3028
    Download Restriction: no
    File URL: http://redfame.com/journal/index.php/aef/article/view/2839
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    housing market; consumption; transmission mechanism; SVAR;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    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:rfa:aefjnl:v:5:y:2018:i:1:p:81-90. 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: Redfame publishing (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    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.