Proceedings of the 2014 International Conference on Management Science and Management Innovation

Does Monetary Policy Have Significant Impact on Housing Prices Evidence from Principal Component Analysis

Authors
Tian-Li Lei, Gang Wu, Dong-Ping Wei
Corresponding Author
Tian-Li Lei
Available Online June 2014.
DOI
https://doi.org/10.2991/msmi-14.2014.55How to use a DOI?
Keywords
Monetary policy, Housing prices, Principal component analysis.
Abstract
We construct a housing price model based on supply and demand equilibrium, and use principal component analysis to avoid multicollinearity of independent variables. Empirical analysis of China’s 35 big-to-medium sized cities average data shows that housing price expectation is the key factor for housing price increase. The impact elasticity of housing price expectation and GDP are 0.46 and 0.08 respectively, while the elasticity of mortgage loan and money supply are between 0.08 and 0.1. It also shows that China’s macro control policy is nearly invalid.
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Proceedings
2014 International Conference on Management Science and Management Innovation (MSMI 2014)
Part of series
Advances in Economics, Business and Management Research
Publication Date
June 2014
ISBN
978-94-6252-015-8
ISSN
2352-5428
DOI
https://doi.org/10.2991/msmi-14.2014.55How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Tian-Li Lei
AU  - Gang Wu
AU  - Dong-Ping Wei
PY  - 2014/06
DA  - 2014/06
TI  - Does Monetary Policy Have Significant Impact on Housing Prices Evidence from Principal Component Analysis
BT  - 2014 International Conference on Management Science and Management Innovation (MSMI 2014)
PB  - Atlantis Press
SP  - 299
EP  - 303
SN  - 2352-5428
UR  - https://doi.org/10.2991/msmi-14.2014.55
DO  - https://doi.org/10.2991/msmi-14.2014.55
ID  - Lei2014/06
ER  -