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

DOI

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.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

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  - Proceedings of the 2014 International Conference on Management Science and Management Innovation
PB  - Atlantis Press
SP  - 299
EP  - 303
SN  - 2352-5428
UR  - https://doi.org/10.2991/msmi-14.2014.55
DO  - 10.2991/msmi-14.2014.55
ID  - Lei2014/06
ER  -