Empirical Research on Housing Price Ripple Effect between China´s Cities

Author

Zhang, Hongjing ; Liu, LanHai

Author_Institution

Sch. of Econ. & Manage., Northeast Dianli Univ., Jilin, China

fYear

2009

fDate

11-12 July 2009

Firstpage

43

Lastpage

46

Abstract

Based on econometrics principles of the cointegration test and the error correction model, this research develops an innovative approach to quantitatively examine the ripple effect of house prices between Chinese big cities. Eight main capital citiespsila house price indices (1998-2007) are selected and calculated using unit root test, Engle-Granger test and error correction model. The empirical results show that there is ripple effect of house price in nationwide eight cities. Simultaneously, the corresponding ripple effect pattern graph of nationwide eight cities is generated. It significantly shows that Shenzhen is original region of nationwide house price changing.

Keywords

econometrics; error correction; pricing; property market; China city; Engle-Granger test; Shenzhen; cointegration test; econometrics principle; error correction model; house price index; housing price ripple effect; ripple effect pattern graph; unit root test; Cities and towns; Conference management; EMP radiation effects; Econometrics; Engineering management; Error correction; Innovation management; Resource management; Statistics; Testing; cointegration; original region of house price changing; regional house price; ripple effect;

fLanguage

English

Publisher

ieee

Conference_Titel

Services Science, Management and Engineering, 2009. SSME '09. IITA International Conference on

Conference_Location

Zhangjiajie

Print_ISBN

978-0-7695-3729-0

Type

conf

DOI

10.1109/SSME.2009.21

Filename

5233351