Undergraduate Honors Theses

Thesis Defended

Spring 2017

Document Type

Thesis

Type of Thesis

Departmental Honors

Department

Economics

First Advisor

Jeffrey Zax

Second Advisor

Terra McKinnish

Third Advisor

Jem Corcoran

Abstract

As Chinese economy booms, Chinese households are experiencing hiking housing prices and expenditures. As the result, the housing affordability issue is hotly discussed in China, especially in large and developed cities like Beijing and Shanghai where housing prices are increasing rapidly. This paper utilizes imputed rent instead of reported expenditures to determine the severity of housing-induced poverty in China. From the results, large cities in China are only experiencing comparatively moderate housing unaffordability problem. Hebei, Guangdong, and Guangxi have much higher percentages of housing-induced poor. Moreover, households in the Northeast and East also have higher likelihoods of encountering housing-induced poverty.

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