DIVORCE AND HOUSING PRICE IN 31 PROVINCES OF CHINA
Keywords:
Divorce, Housing Price, Panel Cointegration Test, FMOLS
Abstract
This paper investigates the long-run cointegration relationship between housing price
and divorce in China using panel data for 31 provinces over the period 1997-2015.
We find that housing price and divorce have the long-run cointegrated relationship
in the full samples, in the short run, housing price has a positive effect on divorce in
the whole country, particularly the Eastern region. For the long run, the reverse effect
is discovered in the full sample and Eastern region. These results are robust once we
use the residential housing price as an alternative variable. Our finding suggests that
the government should take the short-run housing price regulation to slowdown the
divorce rate.
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References
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Battu, H., Brown, H., and Costa-Gomes, M. (2013). Not Always for Richer or Poorer: The Effects of Income Shocks and House Price Changes on Marital Dissolution. Working Paper, 1-20.
Becker, G. S., Landes, E. M., and Michael, R. T. (1977). An Economic Analysis of Marital Instability. Journal of Political Economy, 85(6), 1141-1187.
Boheim, R., and Ermisch, J. (2001). Partnership Dissolution in the UK--the Role of Economic Circumstances. Oxford Bulletin of Economics and Statistics, 63(2), 197-208.
Breitung, J. (2000). The Local Power of Some Unit Root Tests for Panel Data. Advances in Econometrics, 15, 161-178.
Chang, C., and Lee, C. (2010). A Re-Examination of German Government Approval and Economic Performance: Is There a Stable Relationship between Them?. International Economic Journal, 24(1), 25-43.
Chang, C., and Lee, C. (2015). Do Oil Spot and Futures Prices Move Together?. Energy Economics, 50, 379-390.
Chang, C., Lee, C., and Berdiev, A. (2015). The Impact of Government Ideology on Energy Efficiency: Evidence from Panel Data. Energy Efficiency, 8 (6), 1181-1199.
Chang, C., Lee, C., and Hsieh, M. (2011). Globalization, Real Output, and Multiple Structural Breaks. Global Economic Review, 40(4), 421-444.
Dieleman, F. M., and Schouw, R. J. (1989). Divorce, Mobility and Housing Demand. European Journal of Population, 5(3), 235-252.
Du, Z., and Zhang, L. (2015). Home-Purchase Restriction, Property Tax and Housing Price in China: A Counterfactual Analysis. Journal of Econometrics, 188(2), 558-568.
Engle, R. F., and Granger, C. W. J. (1987). Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica, 55(2), 251-276.
Fan, Z., and Hu, X. (2015). Unexpected House-Price Fluctuations and Marital Dissolution. Journal of Huazhong University of Science and Technology(Scocial Science Edition), 29(1), 110-117. (in Chinese)
Farnham, M., Schmidt, L., and Sevak, P. (2011). House Prices and Marital Stability. The American Economic Review, 101(3), 615-619.
Farzanegan, M. R., and Gholipour, H. F. (2016). Divorce and the Cost of Housing: Evidence from Iran. Review of Economics of the Household, 14(4), 1029-1054.
Peteke, F., and Maarten, V.H. (2010). The Impact of Splitting up and Divorce on Housing Careers in the UK. Housing Studies, 25(4), 483-507.
Fereidouni, H. G. (2016). Housing Costs and Divorce Rate in the MENA Countries. Topics in Middle Eastern and North African Economies, 18.
Genesove, D., and Mayer, C. J. (1997). Equity and Time to Sale in the Real Estate Market. The American Economic Review, 87(3), 255-269.
Fan, Z., and Hu, X. (2015). Unexpected House-Price Fluctuations and Marital Dissolution. Journal of Huazhong University of Science and Technology(Scocial Science Edition), 29(1), 110-117. (in Chinese)
Farnham, M., Schmidt, L., and Sevak, P. (2011). House Prices and Marital Stability. The American Economic Review, 101(3), 615-619.
Farzanegan, M. R., and Gholipour, H. F. (2016). Divorce and the Cost of Housing: Evidence from Iran. Review of Economics of the Household, 14(4), 1029-1054.
Peteke, F., and Maarten, V.H. (2010). The Impact of Splitting up and Divorce on Housing Careers in the UK. Housing Studies, 25(4), 483-507.
Fereidouni, H. G. (2016). Housing Costs and Divorce Rate in the MENA Countries. Topics in Middle Eastern and North African Economies, 18.
Genesove, D., and Mayer, C. J. (1997). Equity and Time to Sale in the Real Estate Market. The American Economic Review, 87(3), 255-269.
Fan, Z., and Hu, X. (2015). Unexpected House-Price Fluctuations and Marital Dissolution. Journal of Huazhong University of Science and Technology(Scocial Science Edition), 29(1), 110-117. (in Chinese)
Farnham, M., Schmidt, L., and Sevak, P. (2011). House Prices and Marital Stability. The American Economic Review, 101(3), 615-619.
Farzanegan, M. R., and Gholipour, H. F. (2016). Divorce and the Cost of Housing: Evidence from Iran. Review of Economics of the Household, 14(4), 1029-1054.
Peteke, F., and Maarten, V.H. (2010). The Impact of Splitting up and Divorce on Housing Careers in the UK. Housing Studies, 25(4), 483-507.
Fereidouni, H. G. (2016). Housing Costs and Divorce Rate in the MENA Countries. Topics in Middle Eastern and North African Economies, 18.
Genesove, D., and Mayer, C. J. (1997). Equity and Time to Sale in the Real Estate Market. The American Economic Review, 87(3), 255-269.
Harknett, K., and Schneider, D. (2012). Is a Bad Economy Good for Marriage? The Relationship between Macroeconomic Conditions and Marital Stability from 1998-2009. Working Paper, 1-30.
Im, K. S., Pesaran, M. H., and Shin, Y. (2003). Testing for Unit Roots in Heterogeneous Panels. Journal of Econometrics, 115(1), 53-74.
Jang, C., and Chang, C. (2014). National Income and Fishery Consumption: A Global Investigation. Economic Research - Ekonomska Istraživanja, 27 (1), 15-33.
Klein, J. (2017). House Price Shocks and Individual Divorce Risk in the United States. Journal of Family & Economic Issues, 38(4), 628-649.
Levin, A. T., Lin, C. and Chu, C. J. (2002). Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics, 108(1), 1-24.
Li, L., and Wu, X. (2014). Housing Price and Entrepreneurship in China. Journal of Comparative Economics, 42(2), 436-449.
Li, P., and Xu, J. (2012). Housing Price and Fertility Rate. China Economic Journal, 5, 97-111.
Li, Q., and Chand, S. (2013). House Prices and Market Fundamentals in Urban China. Habitat International, 40(40), 148-153.
Li, S., Whalley, J. and Zhao, X. (2013). Housing Price and Household Savings Rates: Evidence from China. Journal of Chinese Economic and Business Studies, 11(3), 197-217.
Liang, W., Lu, M., and Zhang, H. (2016). Housing Prices Raise Wages: Estimating the Unexpected Effects of Land Supply Regulation in China. Journal of Housing Economics, 33, 70-81.
Mused, A. (2009). Another Look at Wealth and Marital Relationships:The Effects of House Prices on Divorce Rates. Working Paper, 1-28.
Pedroni, P. (2000). Fully Modified OLS for Heterogeneous Cointegrated Panels. Advances in Econometrics, 15, 1-20.
Pedroni, P. (2004). Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis. Econometric Theory, 20(03), 597-625.
Rainer, H., and Smith, I. (2010). Staying Together for the Sake of the Home? House Price Shocks and Partnership Dissolution in the UK. Journal of The Royal Statistical Society Series A-statistics in Society, 173(3), 557-574.
Wang, Q., and Zhou, Q. (2010). China's Divorce and Remarriage Rates: Trends and Regional Disparities. Journal of Divorce & Remarriage, 51(4), 257-267.
Wang, X. (2018). Divorce and Housing Price -Analysis Based on Instrument Variable Method. China Price(3), 58-61.
Wen, J., Yang, X., Feng, G., Sui, B., and Chang, C.P. (2017). The Comovement Between Venture Capital and Innovation in China: What Are The Implications?. Quality & Quantity, 51 (6), 2489-2506
Wei, S. and Zhang, X. (2011). The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China. Journal of Political Economy, 119(3), 511-564.
Wei, S., Zhang, X., and Liu, Y. (2017). Home Ownership as Status Competition: Some Theory and Evidence. Journal of Development Economics, 127, 169-186.
Weiss, Y., and Willis, R. J. (1997). Match Quality, New Information, and Marital Dissolution. Journal of Labor Economics, 15(1), 293-329.
Westerlund, J. (2005). New Simple Tests for Panel Cointegration. Econometric Reviews, 24(3), 297-316.
Yu, W., and Zhou, W. (2015). The Research on Housing Price and Marital Stability in China. Statistics & Decision(24), 83-86. (in Chinese)
Zhang, C., An, G., and Yu, X. (2012). What Drives China's House Prices: Marriage or Money?. China & World Economy, 20(4), 19-36.
Battu, H., Brown, H., and Costa-Gomes, M. (2013). Not Always for Richer or Poorer: The Effects of Income Shocks and House Price Changes on Marital Dissolution. Working Paper, 1-20.
Becker, G. S., Landes, E. M., and Michael, R. T. (1977). An Economic Analysis of Marital Instability. Journal of Political Economy, 85(6), 1141-1187.
Boheim, R., and Ermisch, J. (2001). Partnership Dissolution in the UK--the Role of Economic Circumstances. Oxford Bulletin of Economics and Statistics, 63(2), 197-208.
Breitung, J. (2000). The Local Power of Some Unit Root Tests for Panel Data. Advances in Econometrics, 15, 161-178.
Chang, C., and Lee, C. (2010). A Re-Examination of German Government Approval and Economic Performance: Is There a Stable Relationship between Them?. International Economic Journal, 24(1), 25-43.
Chang, C., and Lee, C. (2015). Do Oil Spot and Futures Prices Move Together?. Energy Economics, 50, 379-390.
Chang, C., Lee, C., and Berdiev, A. (2015). The Impact of Government Ideology on Energy Efficiency: Evidence from Panel Data. Energy Efficiency, 8 (6), 1181-1199.
Chang, C., Lee, C., and Hsieh, M. (2011). Globalization, Real Output, and Multiple Structural Breaks. Global Economic Review, 40(4), 421-444.
Dieleman, F. M., and Schouw, R. J. (1989). Divorce, Mobility and Housing Demand. European Journal of Population, 5(3), 235-252.
Du, Z., and Zhang, L. (2015). Home-Purchase Restriction, Property Tax and Housing Price in China: A Counterfactual Analysis. Journal of Econometrics, 188(2), 558-568.
Engle, R. F., and Granger, C. W. J. (1987). Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica, 55(2), 251-276.
Fan, Z., and Hu, X. (2015). Unexpected House-Price Fluctuations and Marital Dissolution. Journal of Huazhong University of Science and Technology(Scocial Science Edition), 29(1), 110-117. (in Chinese)
Farnham, M., Schmidt, L., and Sevak, P. (2011). House Prices and Marital Stability. The American Economic Review, 101(3), 615-619.
Farzanegan, M. R., and Gholipour, H. F. (2016). Divorce and the Cost of Housing: Evidence from Iran. Review of Economics of the Household, 14(4), 1029-1054.
Peteke, F., and Maarten, V.H. (2010). The Impact of Splitting up and Divorce on Housing Careers in the UK. Housing Studies, 25(4), 483-507.
Fereidouni, H. G. (2016). Housing Costs and Divorce Rate in the MENA Countries. Topics in Middle Eastern and North African Economies, 18.
Genesove, D., and Mayer, C. J. (1997). Equity and Time to Sale in the Real Estate Market. The American Economic Review, 87(3), 255-269.
Fan, Z., and Hu, X. (2015). Unexpected House-Price Fluctuations and Marital Dissolution. Journal of Huazhong University of Science and Technology(Scocial Science Edition), 29(1), 110-117. (in Chinese)
Farnham, M., Schmidt, L., and Sevak, P. (2011). House Prices and Marital Stability. The American Economic Review, 101(3), 615-619.
Farzanegan, M. R., and Gholipour, H. F. (2016). Divorce and the Cost of Housing: Evidence from Iran. Review of Economics of the Household, 14(4), 1029-1054.
Peteke, F., and Maarten, V.H. (2010). The Impact of Splitting up and Divorce on Housing Careers in the UK. Housing Studies, 25(4), 483-507.
Fereidouni, H. G. (2016). Housing Costs and Divorce Rate in the MENA Countries. Topics in Middle Eastern and North African Economies, 18.
Genesove, D., and Mayer, C. J. (1997). Equity and Time to Sale in the Real Estate Market. The American Economic Review, 87(3), 255-269.
Fan, Z., and Hu, X. (2015). Unexpected House-Price Fluctuations and Marital Dissolution. Journal of Huazhong University of Science and Technology(Scocial Science Edition), 29(1), 110-117. (in Chinese)
Farnham, M., Schmidt, L., and Sevak, P. (2011). House Prices and Marital Stability. The American Economic Review, 101(3), 615-619.
Farzanegan, M. R., and Gholipour, H. F. (2016). Divorce and the Cost of Housing: Evidence from Iran. Review of Economics of the Household, 14(4), 1029-1054.
Peteke, F., and Maarten, V.H. (2010). The Impact of Splitting up and Divorce on Housing Careers in the UK. Housing Studies, 25(4), 483-507.
Fereidouni, H. G. (2016). Housing Costs and Divorce Rate in the MENA Countries. Topics in Middle Eastern and North African Economies, 18.
Genesove, D., and Mayer, C. J. (1997). Equity and Time to Sale in the Real Estate Market. The American Economic Review, 87(3), 255-269.
Harknett, K., and Schneider, D. (2012). Is a Bad Economy Good for Marriage? The Relationship between Macroeconomic Conditions and Marital Stability from 1998-2009. Working Paper, 1-30.
Im, K. S., Pesaran, M. H., and Shin, Y. (2003). Testing for Unit Roots in Heterogeneous Panels. Journal of Econometrics, 115(1), 53-74.
Jang, C., and Chang, C. (2014). National Income and Fishery Consumption: A Global Investigation. Economic Research - Ekonomska Istraživanja, 27 (1), 15-33.
Klein, J. (2017). House Price Shocks and Individual Divorce Risk in the United States. Journal of Family & Economic Issues, 38(4), 628-649.
Levin, A. T., Lin, C. and Chu, C. J. (2002). Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics, 108(1), 1-24.
Li, L., and Wu, X. (2014). Housing Price and Entrepreneurship in China. Journal of Comparative Economics, 42(2), 436-449.
Li, P., and Xu, J. (2012). Housing Price and Fertility Rate. China Economic Journal, 5, 97-111.
Li, Q., and Chand, S. (2013). House Prices and Market Fundamentals in Urban China. Habitat International, 40(40), 148-153.
Li, S., Whalley, J. and Zhao, X. (2013). Housing Price and Household Savings Rates: Evidence from China. Journal of Chinese Economic and Business Studies, 11(3), 197-217.
Liang, W., Lu, M., and Zhang, H. (2016). Housing Prices Raise Wages: Estimating the Unexpected Effects of Land Supply Regulation in China. Journal of Housing Economics, 33, 70-81.
Mused, A. (2009). Another Look at Wealth and Marital Relationships:The Effects of House Prices on Divorce Rates. Working Paper, 1-28.
Pedroni, P. (2000). Fully Modified OLS for Heterogeneous Cointegrated Panels. Advances in Econometrics, 15, 1-20.
Pedroni, P. (2004). Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis. Econometric Theory, 20(03), 597-625.
Rainer, H., and Smith, I. (2010). Staying Together for the Sake of the Home? House Price Shocks and Partnership Dissolution in the UK. Journal of The Royal Statistical Society Series A-statistics in Society, 173(3), 557-574.
Wang, Q., and Zhou, Q. (2010). China's Divorce and Remarriage Rates: Trends and Regional Disparities. Journal of Divorce & Remarriage, 51(4), 257-267.
Wang, X. (2018). Divorce and Housing Price -Analysis Based on Instrument Variable Method. China Price(3), 58-61.
Wen, J., Yang, X., Feng, G., Sui, B., and Chang, C.P. (2017). The Comovement Between Venture Capital and Innovation in China: What Are The Implications?. Quality & Quantity, 51 (6), 2489-2506
Wei, S. and Zhang, X. (2011). The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China. Journal of Political Economy, 119(3), 511-564.
Wei, S., Zhang, X., and Liu, Y. (2017). Home Ownership as Status Competition: Some Theory and Evidence. Journal of Development Economics, 127, 169-186.
Weiss, Y., and Willis, R. J. (1997). Match Quality, New Information, and Marital Dissolution. Journal of Labor Economics, 15(1), 293-329.
Westerlund, J. (2005). New Simple Tests for Panel Cointegration. Econometric Reviews, 24(3), 297-316.
Yu, W., and Zhou, W. (2015). The Research on Housing Price and Marital Stability in China. Statistics & Decision(24), 83-86. (in Chinese)
Zhang, C., An, G., and Yu, X. (2012). What Drives China's House Prices: Marriage or Money?. China & World Economy, 20(4), 19-36.
Published
2018-10-31
How to Cite
Zheng, M., Chen, Y., Feng, G.-F., Wen, J., & Chang, C.-P. (2018). DIVORCE AND HOUSING PRICE IN 31 PROVINCES OF CHINA. Buletin Ekonomi Moneter Dan Perbankan, 21(2), 161-176. https://doi.org/10.21098/bemp.v21i1.942
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Copyright (c) 2018 Chun-Ping Chang
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
