Abstract:
This paper builds a two-sector DSGE model with firm entry, studying the impact of housing price fluctuation on the resource allocation and social welfare. The simulation results show that the increase of housing price induced by exogenous shocks will raise the threshold of firm entry and reduce the number of new-entry firms, which will have a negative effect on the varieties of goods and output, decreasing the social welfare. The degree of social welfare change is up to the weight of house sector and the elasticity of entry cost to housing price. It's worthy attention that when the elasticity of entry cost to housing price is high enough, a beneficial technology shock will even increase the monopolies and reduce the social welfare. In the end, the empirical analysis, using the panel data of 35 major cities in China from 1998 to 2010, verifies the existence of the mechanism that housing price impacts the firm entry decision in the channel of entry cost.
雷文妮, 龚六堂. 房价波动与社会福利——基于内生化企业进入的研究[J]. 金融研究, 2016, 434(8): 51-67.
LEI Wenni, GONG Liutang. Housing Price Fluctuation and Social Welfare:A Research Based on Endogenous Firm Entry. Journal of Financial Research, 2016, 434(8): 51-67.
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