Dynamic Comparison and Management Measures of Real Estate Markets' Wealth Effect in Different Regions of China

摘要

Through time-varying parameter model, this paper testes the dynamic variance of real estate markets' wealth effect in three different regions of China. The time-varying parameters model shows that East China, due to appreciation potential, attracts real estate developers and speculators, so the wealth effect is obviously higher and more stable. But Central China, affected by its own economic fundamentals, the wealth effect is not that stable. West China, due to the limited financing channels, is easily affected by the macroeconomic policies on the real estate market. In this paper, we suggest that state department should analyze different conditions and real estate markets in the three regions, and then take different but efficient measures to promote the development of real estate market in different regions, and stimulate local consumption. Meantime, it is also necessary to maintain the balance of commercial housing supply and demand to avoid the excessive growth of housing prices that may cause pricing bubbles.