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House Price and Residents’ Risk Preference
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TitleHouse Price and Residents’ Risk Preference  
AuthorZhang Guangli and Liu Xiaoyuan  
OrganizationBusiness School, Central University of Finance and Economics 
Key WordsHouse Price; Risk Preference; Endogeneity; Household Finance Survey Data 
AbstractBy the provincial data and nationwide micro survey data, this paper empirically studies the impact of house price on residents’ risk preference. We find that the level and growth rate of house price both have significantly positive impact on residents’ risk preference. Specifically, in the area with higher house price, residents show a higher level of subjective risk preference attitude and objective risk preference behavior. By the analysis on micro survey data, we further find that the house value and house price growth rate are both positively correctly with residents’ risk preference. The housing debt, housing property types, health status of residents and the amount of houses owned by one resident show a significant moderating effect on the relationship between house price and residents’ risk preference. 
Serial NumberWP1185 
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