Rising Housing Price, Multi-Suite Decision And Household Savings Rate in Urban China
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| Title | Rising Housing Price, Multi-Suite Decision And Household Savings Rate in Urban China
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| Author | Li Xuesong and Huang Yanyan |
| Organization | Chinese Academy of Social Sciences,CASS |
| Email | xsli@cass.org.cn；sysy8112@126.com |
| Key Words | Housing Price; Multi-Suite Decision; Savings Rate; Switching Regression Models with Self-selectivity; Propensity Score Matching (Kernel Matching) |
| Abstract | Employing China Household Finance Survey (CHFS) data, this paper empirically investigates the effects of the rising housing price and household multi-suite decision on urban household savings rate after correcting sample selection bias by using Switching Regression Models with Self-selectivity and Propensity Score Matching (Kernel Matching). Results show that the rising housing price affects multi-suite decision significantly and positively; both the rising housing price and multi-suite decision affect urban household savings rate significantly, but in opposite directions. As house price rises, the substitution and budget constraint effects on consumption are significant, resulting in higher savings rate; but the wealth effect of multi-suite households increases consumption and lowers their savings rates. |
| Serial Number | WP792 |
| Time | 2015-01-06 |
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