What drives housing consumption in China? Based on a dynamic optimal general equilibrium model and spatial panel data analysis

Abstract

Abstract. This paper examines the housing sales in China from 2004 to 2015 utilizing an optimal dynamic general equilibrium theoretical framework combined with a macroeconomic model. The spatial panel econometric empirical results suggest that housing prices and economic growth have increased housing sales in China. However, since house is considered as a special commodity in China, and unemployment show negative impacts on housing sales. Keywords. Energy use, Housing values, Optimal dynamic general equilibrium, Spatial panel econometrics, China. JEL. Q41, R31, E10.