How Does Housing Price Affect Household Saving Rate and Wealth Inequality？
This paper builds a lifecycle Bewley model which incorporates the rising housing price and endogenous housing demand, in order to investigate on the effects that housing price may have on household saving rate and wealth inequality in urban China. This paper finds that the rising housing price stimulates the investment housing demand of the rich, which in turn boosts the housing price. A subset of young households have to save more in order to catch up with the housing price while more households are not able to purchase their own homes, leading to higher Gini coefficient of housing asset. The distortion induced by the housing price generally implies welfare loss for urban residents, among which the middow income households suffer most.
NETL
NSTL
万方数据
维普
