Is It Substitution or Complementation Between Car Purchasing and Housing Consumption in China?——Based on Panel Variable Coefficient Model
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Is It Substitution or Complementation Between Car Purchasing and Housing Consumption in China?——Based on Panel Variable Coefficient Model
LIU Yao-bin1,2, FU Yan-qin2
1.Research Center of the Central China Economic and Social Development, Nanchang University, Nanchang 330031, China; 2.School of Economics and Management, Nanchang University, Nanchang 330031, China
Abstract There is a consumption substitution between durable and nondurable goods, but whether the relationship among durable goods is substitution or complementation has not been finalized yet. The housing price and private car ownership statistics of China show that there is synchronization growth between them, with regional differences among provinces. Through the establishment of the mathematical model including car and housing consumption based on Utility Function, we made the empirical analysis of the connection between housing price and private cars ownership during 1997—2014 according to the panel variable coefficient model.The results indicate that: (1) Among durable goods there are substitution relationships under different conditions, which change with the substitution parameter ρ; (2) There exists substitution relation between automobile and housing consumption, and the main substitute objects concentrate on residential consumption; (3) There is a slight regional difference in the substitution of house consumption by car purchasing between different regions, but the regional differences in distribution characteristics are not regular; (4) The substitution intensity shows an upward trend with time, increasing year by year on the whole. Therefore, it is proposed that housing prices should be appropriately restrained in order to coordinate the housing and automobile market.
LIU Yao-Ban,FU Yan-Qin. Is It Substitution or Complementation Between Car Purchasing and Housing Consumption in China?——Based on Panel Variable Coefficient Model. Economic Survey, 2017, 34(4): 0129.
2017, Vol. 34 
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