Author(s)

Qimin Lin^*, Wenjie Liu, Yang Li, Mingze Zhou

School of Business Administration, South China University of Technology, Guangzhou, China.

Based on VAR model, this paper employs Granger causality test to analyze the interactive relationship between housing price and land price in Beijing. The main conclusions are as follows: 1) there is a positive co-integration relationship between housing price and land price in Beijing. Without considering other factors, housing price rises an average of 0.41 percent when land price rises 1 percent in the long term so that reducing land price is an effective way to lower housing price; 2) the Granger causality between Beijing housing price and land price changes with the length of time, but on the whole, housing price has a relatively larger impact on land price. Hence, the implication for policy makers is that it is more significant for controlling housing price rather than land price.

Housing Price, Land Price, Granger Causality Test

Lin, Q. , Liu, W. , Li, Y. and Zhou, M. (2016) A Study on the Interactive Relationship between Housing Price and Land Price in Beijing
—From the Perspective of Co-Integration Analysis and Granger Causality Test. Open Journal of Social Sciences, 4, 77-83. doi: 10.4236/jss.2016.44011.