An Empirical Study on the Impacts of Buy-Limit Order on Housing Prices in Chinese Cities: Estimation Based on Difference-in-Difference Model

摘要

Using China’s 19 major cities’ 2009-2011 panel data, this article measures how the introduction of Buy-Limit Order affects China’s real state market and housing prices. By alternately using responsive flats’ rental data, rental-sale substitution principle is checked, and the result shows that Buy-Limit Order possibly has negative impacts of China’s housing prices’ increase and makes aggregate investment slow down, while it pushes the flats’ rent higher in every sample city and housing part of aggregate consumption. Totally, Buy- Limit Order retards China’s rapid economic growth by 0.3% around by applying dynamic DID (difference in difference) model.