Do bank loans and local amenities explain Chinese urban house prices?

Huang, Daisy J. and Leung, Charles K. and Qu, Baozhi (2015): Do bank loans and local amenities explain Chinese urban house prices?

Abstract

Using Chinese city-level data from 1999 to 2012 and considering geological, environmental, and social diversity, this study suggests that credit plays a significant role in driving up house prices after the Great Recession, whereas property prices only influence bank lending before 2008. Besides, local amenities such as higher education, green infrastructure, healthcare, and climate also positively affect house prices. Moreover, the impacts of bank loans and amenities on housing prices are interacted rather than isolated.

• Item Type: MPRA Paper
• Language: English
• Keywords: endogenous income and endogenous amenities; bank loans and monetary policy; multicollinearity; clustered standard errors
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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