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Are government interventions effective in regulating China's house prices?

Author

Listed:
  • Nannan Yuan

    (Graduate School of Economics, Kobe University)

  • Shigeyuki Hamori

    (Graduate School of Economics, Kobe University)

Abstract

This study investigates whether government interventions are effective in regulating China fs house prices. To do so, we also consider other control variables such as real land price, per capita real disposable income, and newly started floor spaces. Using panel data of 30 provinces and cities for the period 2002:Q2 to 2012:Q4, we provide empirical evidence by applying both static and dynamic models to examine the effectiveness of China fs government interventions on house prices. The main empirical results show that after enacting interventional policies, the growth rate of house prices decreased, indicating that government interventions are effective. In addition, a greater supply of land and houses also help to regulate house prices.

Suggested Citation

  • Nannan Yuan & Shigeyuki Hamori, 2014. "Are government interventions effective in regulating China's house prices?," Discussion Papers 1427, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1427
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    References listed on IDEAS

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    More about this item

    Keywords

    government intervention; house prices; effectivenesst;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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