Research on the Formation Mechanism and Dynamic Factors of Commercial Housing Prices Based on the Correction Carey Model - Panel Data from Thirty-Five Key Cities

Abstract

Since 2004, a nationwide commercial housing prices showing explosive growth, This paper use the Carey model studying the volatility of commodity housing price mechanism theory. By Carey theoretical correction model in 1998-2003 and 2004-2010, respectively, in two stages to establish the individual fixed effects and individual random effects panel data model focused on the monitoring of the Ministry of Construction of the 35 cities of the empirical testing of commercial housing price. Analysis concluded that the cost of land, building costs, per capita disposable income of urban residents, urban population, and psychological expectations is the main factors to promote China's real estate prices.