%0 Journal Article
	%A Wen-Chi Liu
	%D 2014
	%J International Journal of Economics and Management Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 86, 2014
	%T The Study on the Stationarity of Housing Price-to-Rent  and Housing Price-to-Income Ratios in China
	%U https://publications.waset.org/pdf/9997322
	%V 86
	%X This paper aims to examine whether a bubble is present in the housing market of China. Thus, we use the housing  price-to-income ratios and housing price-to-rent ratios of 35 cities from 1998 to 2010. The methods of the panel KSS unit root test with a  Fourier function and the SPSM process are likewise used. The panel  KSS unit root test with a Fourier function considers the problem of  non-linearity and structural changes, and the SPSM process can avoid  the stationary time series from dominating the result-generated bias.  Through a rigorous empirical study, we determine that the housing  price-to-income ratios are stationary in 34 of the 35 cities in China.  Only Xining is non-stationary. The housing price-to-rent ratios are  stationary in 32 of the 35 cities in China. Chengdu, Fuzhou, and  Zhengzhou are non-stationary. Overall, the housing bubbles are not a  serious problem in China at the time.

 

	%P 367 - 371