{"title":"House prices, financing mode and economic growth","authors":"","doi":"10.1016/j.irfa.2024.103600","DOIUrl":null,"url":null,"abstract":"<div><div>This study delves into the intricate relationship between house prices and the economy, using a combined dataset of 287 Chinese cities and incorporating urban investment bonds, local government financing platforms, and land resources statistics. Key findings indicate that rising house prices boosted per capita gross domestic product before the financial crisis, but this effect diminished after the crisis. Although rising prices increased total output, they also heightened local debt risks, resulting in a double-edged impact. The study also found that government policies that caused a rapid increase in house prices disrupted resource allocation, jeopardizing urban sustainability. Research emphasizes the importance of carefully designed policies to ensure the balanced development of the real estate market, which is conducive to long-term economic health.</div></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":null,"pages":null},"PeriodicalIF":7.5000,"publicationDate":"2024-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Review of Financial Analysis","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1057521924005325","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This study delves into the intricate relationship between house prices and the economy, using a combined dataset of 287 Chinese cities and incorporating urban investment bonds, local government financing platforms, and land resources statistics. Key findings indicate that rising house prices boosted per capita gross domestic product before the financial crisis, but this effect diminished after the crisis. Although rising prices increased total output, they also heightened local debt risks, resulting in a double-edged impact. The study also found that government policies that caused a rapid increase in house prices disrupted resource allocation, jeopardizing urban sustainability. Research emphasizes the importance of carefully designed policies to ensure the balanced development of the real estate market, which is conducive to long-term economic health.
期刊介绍:
The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.