Abstract Using the time series data from 1997 to 2009, the authors analyze the dynamic relationship among household debt, housing price and consumption. The result indicates that there is a long-term equilibrium relationship among household debt, housing price and consumption in the long term|the fluctuation of housing price has a positive and significant effect on consumption, while the effect of household debt on consumption is insignificant|when the household debt deviates from the short-term fluctuation to long-term equilibrium, the readjustment will convert non-equilibrium to equilibrium at minus 0.42. In order to stimulate consumption, the authors put forward the relevant policy, such as accelerating the construction of finance market and attaching importance to the wealth effect of house and allocating household assets rationally.
GUO Xin-Hua,He-Ya-Fei. An Analysis of the Dynamic Relationship among Household Debt, Fluctuation of Housing Price and Consumption in China. Economic Survey, 2011, 28(1): 09.
2011, Vol. 28 
