Housing Risk and Its Influence on House Price: An Expected Utility Approach

Table 1

Data description.

Variable	Name	Label/measurement	Mean	Std.dev.
HPM	Monthly house price	Yuan/m^2
rhm	Price growth rate	rhmt = ln(HPMt) − ln(HPt−1)
meanHPM	Annualized house price	Annualized mean of monthly price	5009.6	4052.3
varh	Housing volatility	Annualized variance of monthly rhmt	0.084	0.385
HS	Housing space sold	Annual, 10 thousand m^2	2862.4	2765.5
HE	Housing expenditure	Annual, 100 million yuan	1592.1	2194.1
HP	House price	HP = HE/HS, yuan/m^2	4566.0	3730.9
rh	Price growth rate	rht = ln(HPt) − ln(HPt−1)	0.102	0.099
CPI	Consumer price index	2000 = 100	123.1	17.72
G	Real house price	G = HP/CPI	35.953	27.701
lg	Logarithm form	lg = ln(G)
Y	Disposable income	Urban citizens, yuan/person	18218.8	10332.2
RY	Real income	RY = Y/CPI	142.028	68.680
lry	Logarithm form	lry = ln(RY)
ry	Real income growth	ryt = ln(RYt) − ln(RYt−1)	0.0775	0.0286
C	Final consumption	100 million yuan	6136.5	6342.3
i	Interest rate	Base rate, on loans	0.0525	0.0056
inf	Inflation rate	inft = ln(CPIt) − ln(CPIt−1)	0.0248	0.0197
tau	Housing market risk	tau = 0.5 × HE/C × varh	0.0041	0.0114