Journal
HABITAT INTERNATIONAL
Volume 47, Issue -, Pages 29-40Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.habitatint.2015.01.003
Keywords
Price-volume; Regulation policy; Searching match model; Panel VAR model
Funding
- MOE (Ministry of Education in China) [11 YJC790275]
- National Social Science Foundation of China [14BJY214]
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This paper introduces the house searching model with down-payment constraints and analyzes the price-volume relationships in Chinese coastal and inland housing markets. With the panel data from 35 Chinese metropolitans, the Granger relationship (from price change to trading volume) is found in coastal cities where house prices are high with speculation. But under the rigorous policy of purchase limit, such price volume linkage is somewhat dampened. By contrast, in inland cities where speculative activity is relatively weak, the Granger causality (from volume to price change) is more significant before the prohibition policy. After that, the effects reverse. However, in both kinds of cities the impulse responses remain significant, indicating that the driving mechanisms between price and volume may occur because of exogenous impulses. The results suggest that strict market intervention causes some significant effects but cannot radically change the driving mechanism. (C) 2015 Elsevier Ltd. All rights reserved.
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