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Tests of the Housing Wealth Effect from Consumption Expenditure
|Issue Date: ||2020-08-03 17:33:45 (UTC+8)|
Housing is regard as a kind of wealth, and households will hold their houses as their own wealth. In addition, the wealth held by households will affect their consumption decisions. The prior literatures have focused on the relationship between changes in housing prices and the consumption expenditures of different regions and cohorts. Taiwan’s home ownership rate is high, and the proportion of housing assets in Taiwan’s household wealth is also high. Therefore, my study mainly discusses whether regionally and nationally changes in housing prices in Taiwan will create housing wealth effects, which will subsequently affect household consumption decisions.
In this thesis, we examine the relationship between the changes in housing prices of four metropolitan areas (Taipei, New Taipei, Taichung and Kaohsiung) and different types of consumption expenditures. We investigate the relationship between changes in national housing prices and different types of consumption expenditures as well. We use Taiwanese survey of family income and expenditure from Taiwan Accounting and Statistics from 1993 to 2018. We find that under the increase in regional housing prices, most types of consumption expenditures in Taichung and Kaohsiung has a positive wealth effect, while the Taipei and New Taipei present a negative wealth effect, and the wealth effect of the Taipei and New Taipei are significantly lower than that of the Taichung and Kaohsiung. In addition, changes in regional housing prices will cause households to choose to spend on high-visibility consumer spending, indicating that the wealth effect on housing asset will allow households to spend on high-visibility and entity-visible consumption such as clothing to show their social and economic status.
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|Source URI: ||http://thesis.lib.nccu.edu.tw/record/#G0107357013|
|Data Type: ||thesis|
|Appears in Collections:||[財務管理學系] 學位論文|
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