TITLE:
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
AUTHORS:
Qimin Lin, Wenjie Liu, Yang Li, Mingze Zhou
KEYWORDS:
Housing Price, Land Price, Granger Causality Test
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.4 No.4,
April
21,
2016
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.