American Economic Journal: Macroeconomics
no. 2, April 2023
This paper investigates the interrelationship between urbanization, structural transformation, and the post-2000 Chinese housing boom through the lens of a dynamic spatial equilibrium model that features migration and a rich housing market structure with mortgages. Urbanization and structural transformation emerge as key drivers of China's house price boom, while at the same time rising house prices impede these forces of economic transition. Policies to boost urbanization can be undone by the endogenous price response. Land supply expansion ameliorates this negative feedback. Overall, housing markets powerfully shape the path of economic development.
Garriga, Carlos, Aaron Hedlund, Yang Tang, and Ping Wang.
"Rural-Urban Migration, Structural Transformation, and Housing Markets in China."
American Economic Journal: Macroeconomics,
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Housing Supply and Markets
Regional Development Planning and Policy