The Spatial Statistics Analysis of Housing Market Bubbles

With the incorporation of spatial statistic method, this paper constructs a state-space model of housing market bubbles, discussing the spatial pattern of housing market bubbles in China,and identifying the dynamic evolution process. The results show that: The bubbles of housing market walked along a path from low level to high level and then downsized to a low level during the period of 2009 and 2014, and the highest level stayed at 2011. From overall, the level of housing market bubbles had shown significant spatial autocorrelation and spatial agglomeration. In detail, the direction of North-South in China showed the inverted U shape, i.e., Central region was with high bubbles, and two ends contained low bubbles; from East-West direction, the East had high bubbles and the West contained comparatively low bubbles. Local spatial test indicates that there were some approximate spatial features in housing market bubbles among the adjacent regions. Observed from the level of housing market bubbles, China contained 3 plates: The first was the plate with low bubble level,including 3 provinces in North-East China(provinces of Jilin, Heilongjiang and Liaoning were included,but Dalian in Liaoning province was excluded; the second was the Central and West plate(the provinces of Yunnan, Guizhou, Sichuan, Guangdong, Guangxi, Hunan, Hubei, Gansu, Fujian, Jiangxi and Hainan were included in this plate), which was also featured with low bubble; and the third was Central East plate(provinces or provincial regions of Beijing, Tianjin, Hebei, Jiangsu, Zhejiang, Shanghai, Shandong,Anhui, Shanxi, Shaanxi and Inner Mongolia were included), which was characterized as high bubble region.