Abstract This paper discusses the effect of land policy and monetary policy on housing price andanalyzes dynamic relationship between land price, the interest rates and the housing price by constructing state space model and estimating the parameter with Kalman filtering. It is concluded that the interaction of the land price, interest rates and housing price using the impulse response function and variance decomposition of the VAR model. Empirical results show that land price always has a positive influence on housing price while the influence of interest rate on housing price is not significant. The impact of housing price to land price will be displayed currently while the impact of land price to housing price will be showed with a period lag. Finally it puts forward the policy suggestions of establishing the system of local government’s finance and tax, reforming the interest rate decision mechanism, promoting the comprehensive reform real estate tax policy.
FAN Xin-Yang,ZHANG Suo-De. The Effect Mechanism Research of the Land Policy and Monetary Policy on House Prices-——Based on the VAR model. Economic Survey, 2013, 1(4): 088.
2013, Vol. 1 
