Study on the Spillover Effect of Housing Price in Yangtze River Delta Based on VAR Model

Abstract

This paper analyzed housing prices’ spillover effect of four cities. Through theoretical model and empirical analysis, we can conclude that there is a certain correlation between the housing prices, and Shanghai’s housing price fluctuation has a greater impact on other cities. Nanjing and Hefei have a strong correlation and spillover effect with each other but the spillover effect on Hangzhou is not obvious. Hangzhou can produce larger and more durable influence on its own. This paper therefore is of great practical significance in formulating real estate policies.