TY - JOUR
T1 - THE ADVERSE EFFECTS of ECONOMIC POLICY UNCERTAINTY on INDEMNIFICATORY HOUSING MARKET in CHINA
AU - Fu, Jian
AU - Yu, Xiaofen
AU - Koo, Chun Kwong
AU - Lee, Wai Choi
N1 - Publisher Copyright:
© 2020 World Scientific Publishing Company.
PY - 2021/9/1
Y1 - 2021/9/1
N2 - This paper empirically examines the impact of the economic policy uncertainty (EPU) index on market indicators of indemnificatory houses in China for the period from January 2012 to December 2018. We use three indicators of the indemnificatory housing market: (i) the price of commodity housing unit, (ii) the number of completion for indemnificatory housing unit and (iii) the amount of investment for indemnificatory housing unit. The findings from the Granger Causality in Distribution test show that the EPU causes the commodity housing price at the left-tail and the right-tail, but not at the centre of the distribution. Besides, the EPU causes the indemnificatory housing completion volume at the right tail, but not at the left and the centre of the distribution. Finally, we observe that the EPU causes the indemnificatory housing investment at the right tail but not at the left and the centre of the distribution. These findings indicate that the indemnificatory housing market in China is mainly affected by the extreme changes in the EPU.
AB - This paper empirically examines the impact of the economic policy uncertainty (EPU) index on market indicators of indemnificatory houses in China for the period from January 2012 to December 2018. We use three indicators of the indemnificatory housing market: (i) the price of commodity housing unit, (ii) the number of completion for indemnificatory housing unit and (iii) the amount of investment for indemnificatory housing unit. The findings from the Granger Causality in Distribution test show that the EPU causes the commodity housing price at the left-tail and the right-tail, but not at the centre of the distribution. Besides, the EPU causes the indemnificatory housing completion volume at the right tail, but not at the left and the centre of the distribution. Finally, we observe that the EPU causes the indemnificatory housing investment at the right tail but not at the left and the centre of the distribution. These findings indicate that the indemnificatory housing market in China is mainly affected by the extreme changes in the EPU.
KW - Chinese housing market
KW - EPU index
KW - Granger Causality in Distribution
KW - economic policy uncertainty
KW - indemnificatory housing policies
UR - http://www.scopus.com/inward/record.url?scp=85092788868&partnerID=8YFLogxK
U2 - 10.1142/S0217590820460017
DO - 10.1142/S0217590820460017
M3 - Article
AN - SCOPUS:85092788868
SN - 0217-5908
VL - 66
SP - 1337
EP - 1353
JO - Singapore Economic Review
JF - Singapore Economic Review
IS - 5
ER -