| 简介： | Following the transition from a centralized housing allocation to a housing market, houses have become a status good for Chinese households. Exploiting this observation, we use a dynamic stochastic general equilibrium model to study quantitatively the effect of housing consumption externalities (“keeping up with the Zhangs”) on house price dynamics. Our Bayesian estimation reveals that housing consumption externalities have a significant role in house price dynamics, amplifying the response of house prices to shocks. Time-invariant transaction taxes that designed to offset the effects of keeping up with the Zhangs can significantly reduce the impacts of housing demand shocks on housing prices. |