DIVORCE AND HOUSING PRICE IN 31 PROVINCES OF CHINA

Abstract

This paper investigates the long-run cointegration relationship between housing price and divorce in China using panel data for 31 provinces over the period 1997-2015. We find that housing price and divorce have the long-run cointegrated relationship in the full samples, in the short run, housing price has a positive effect on divorce in the whole country, particularly the Eastern region. For the long run, the reverse effect is discovered in the full sample and Eastern region. These results are robust once we use the residential housing price as an alternative variable. Our finding suggests that the government should take the short-run housing price regulation to slowdown the divorce rate.