Cross-city spillovers in Chinese housing markets: From a city network perspective

Gong, Yunlong; de Haan, Jan; Boelhouwer, P.J.

doi:10.1111/pirs.12512

Cross-city spillovers in Chinese housing markets

Title

Cross-city spillovers in Chinese housing markets: From a city network perspective

Author

Gong, Yunlong (China University of Mining and Technology)
de Haan, Jan (Statistics Netherlands (CBS))
Boelhouwer, P.J. (TU Delft Housing Systems)

Date

2020

Abstract

Cross-city spillovers among housing markets are usually modelled by the classical spatial autoregressive models, which usually suffer from identification problems in practice. This paper investigates the cross-city house price spillovers arising from city network externalities wherein a city's connections with other cities in the urban network create the external house price premium through productivity and amenity gains. Using a cross-sectional data set for an urban system in eastern China, we present significant evidence for positive network spillovers by the application of spatial lag of X model and spatial Durbin error model. Besides, common shocks are also proved to be responsible for cross-city dependence of house prices.

Subject

China
city network externalities
house prices
spatial econometrics
spillovers

To reference this document use:

http://resolver.tudelft.nl/uuid:52097b2a-c73e-48ff-8aab-d5be9619e70c

DOI

https://doi.org/10.1111/pirs.12512

ISSN

1056-8190

Source

Papers in Regional Science, 99 (4), 1065-1085

Part of collection

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