An Empirical Study on Housing Prices and Income Inequality in Taiwan
Date Issued
2012
Date
2012
Author(s)
Weng, Po-Yang
Abstract
The economy of Taiwan is develop quickly in recent decades,people become richer than before,and the standard of living promote a lot.However,the rapid development has also led to many social problems.There is a survey in 2012 shows that the price of houses are too high,the income too low and the widening gap between the rich and the poor were ranked the top three of ten grievances.The soaring price of houses not only makes the majority of people cannot afford,but also expands the gap between rich and poor,the Government have no choice but to pay much attention to the bubble crisis behind it.
This thesis use statistical regression,time series approach to build a macro-econometric model of Taiwan,the sample period is from 1961:1-2010:3,and we use it to perform scenario analysis under the following three situations: (1) The house prices rise or fall fiercely; (2) Raised or lowered the lending rate; (3) Increase or decrease of the Gini coefficient.We can get the following conclusions:When the house prices continued soaring,even though it can driven the real gross domestic product increased,but it will result in a lot of social problems such as rising prices and unemployment rate,the wage index fell and the widening wealth gap;if the Government intend to reduce the house prices by lowering the lending rate,can suppress the house prices successfully,but will lead to the consequence of economic recession;as for the positive relationship between the Gini coefficient and the economic growth in Taiwan, indicating the uneven distribution of wealth is certainly conducive to the economic growth,but it will cause serious consequences such as rising unemployment rate and falling wage index,and even cause social unrest,waste a lot of public resources.
Subjects
Housing Prices
Income Inequality
Gini coefficient
macro-econometric model
scenario analysis
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
index.html
Size
23.49 KB
Format
HTML
Checksum
(MD5):50c4cb2115ebdc4dab253ae33ecd09b4