Housing Wealth, Financial Wealth and Consumption in China

被引:42
作者
Chen, Jie [1 ]
Guo, Feng [2 ]
Zhu, Aiyong [3 ]
机构
[1] Fudan Univ, Sch Management, Shanghai 200433, Peoples R China
[2] No Kentucky Univ, Haile US Bank, Coll Business, Highland Hts, KY 41076 USA
[3] Fudan Univ, Sch Econ, Shanghai 200433, Peoples R China
关键词
consumption; disposable income; financial wealth; housing wealth; E21; E32; PERMANENT; PRICES;
D O I
10.1111/j.1749-124X.2009.01150.x
中图分类号
F [经济];
学科分类号
020101 [政治经济学];
摘要
The paper investigates the relationship between changes in asset wealth and the trend movements of household consumption in urban China. Using the vector error correction cointegration model, we demonstrate that there is a unique long-run cointegrating relationship between household consumption, disposable income, financial wealth and housing wealth in urban China. We find that housing wealth is the only factor that restores the long-run equilibrium relationship when the cointegrated system is disturbed by an external shock. In addition, our permanent-transitory variance decomposition analysis indicates that nearly all variance in the movement of consumption is permanent, supporting the classical random walk hypothesis of consumption behavior. However, a large proportion of variance in the short-run movements of housing wealth is found to be transitory.
引用
收藏
页码:57 / 74
页数:18
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