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Abstract Based on the lifecycle theory, using 1998 to August 2011 monthly data and using cointegration equation, error correction model, Granger causality test and impulsive effect and variance decomposition method, this paper does the empirical research in China’s real estate wealth effect. The results show that: China’s real estate prices has a positive impact on the consumption, when house prices rise by 1%, the consumption expenditure rise by 0.966%; from the granger tests, house prices are the reasons of consumer spending increase; from the error correction model, house prices change has no significant shortterm effects on consumption.
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Received: 18 July 2013
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2013, Vol. 10 
