Open Journal of Social Sciences

Volume 4, Issue 4 (April 2016)

ISSN Print: 2327-5952   ISSN Online: 2327-5960

Google-based Impact Factor: 0.85  Citations  

A Study on the Interactive Relationship between Housing Price and Land Price in Beijing
—From the Perspective of Co-Integration Analysis and Granger Causality Test

HTML  XML Download Download as PDF (Size: 327KB)  PP. 77-83  
DOI: 10.4236/jss.2016.44011    1,747 Downloads   2,252 Views   Citations

ABSTRACT

Based on VAR model, this paper employs Granger causality test to analyze the interactive relationship between housing price and land price in Beijing. The main conclusions are as follows: 1) there is a positive co-integration relationship between housing price and land price in Beijing. Without considering other factors, housing price rises an average of 0.41 percent when land price rises 1 percent in the long term so that reducing land price is an effective way to lower housing price; 2) the Granger causality between Beijing housing price and land price changes with the length of time, but on the whole, housing price has a relatively larger impact on land price. Hence, the implication for policy makers is that it is more significant for controlling housing price rather than land price.

Cite this paper

Lin, Q. , Liu, W. , Li, Y. and Zhou, M. (2016) A Study on the Interactive Relationship between Housing Price and Land Price in Beijing
—From the Perspective of Co-Integration Analysis and Granger Causality Test. Open Journal of Social Sciences, 4, 77-83. doi: 10.4236/jss.2016.44011.

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.