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Research on the Impact of Purchase Restriction Policy on Housing Price Based on Difference-In-Difference Method

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• Volume 9,Issue 6, Nov. 2022

Year:

2022

Type of Publication:

Article

Keywords:

Real Estate, Policy Effect Evaluation, Panel Data, Method of Double Difference

Authors:

• Tang, Yifei
• Fan, Yuyang
• Wang, Luyan
• Pan, Wenshan
• Wang, Yifei

Journal:

IJEIR

Volume:

9

Number:

6

Pages:

245-254

Month:

November

ISSN:

2349-5219

BibTex:

@article{1954, author = "Yifei Tang and Yuyang Fan and Luyan Wang and Wenshan Pan and Yifei Wang", abstract = "Housing prices have been a hot topic in recent years, and the purchase restriction policy is an important means to regulate housing prices. Therefore, the effectiveness of the purchase restriction policy is worth exploring. This paper selects the monthly panel data of housing prices in Hangzhou and Ningbo from 2016 to 2021, and uses the difference-in-difference method to explore the impact of the purchase restriction policy on urban housing prices. It is found that after the implementation of the purchase restriction policy, housing prices have been effectively suppressed in the short term, and the policy effect has gradually weakened over time. Through the comparison of the two cities, it is found that the effect of the purchase restriction policy in Hangzhou is better than that in Ningbo. On the basis of the above research, this paper also finds that the purchase restriction policy has a certain lag, and it began to significantly reduce housing prices only three months after the implementation of the purchase restriction policy.", issn = "23495219", journal = "IJEIR", keywords = "Real Estate, Policy Effect Evaluation, Panel Data, Method of Double Difference", month = "November", number = "6", pages = "245-254", title = "{R}esearch on the {I}mpact of {P}urchase {R}estriction {P}olicy on {H}ousing {P}rice {B}ased on {D}ifference-{I}n-{D}ifference {M}ethod", volume = "9", year = "2022", }

Abstract:

Housing prices have been a hot topic in recent years, and the purchase restriction policy is an important means to regulate housing prices. Therefore, the effectiveness of the purchase restriction policy is worth exploring. This paper selects the monthly panel data of housing prices in Hangzhou and Ningbo from 2016 to 2021, and uses the difference-in-difference method to explore the impact of the purchase restriction policy on urban housing prices. It is found that after the implementation of the purchase restriction policy, housing prices have been effectively suppressed in the short term, and the policy effect has gradually weakened over time. Through the comparison of the two cities, it is found that the effect of the purchase restriction policy in Hangzhou is better than that in Ningbo. On the basis of the above research, this paper also finds that the purchase restriction policy has a certain lag, and it began to significantly reduce housing prices only three months after the implementation of the purchase restriction policy.

Full text: IJIRES_1954_FINAL.pdf Online version [Bibtex]