A Dynamic Model of Housing Wealth Effect: Based on the Diversity of Wealth Expectations

Abstract

Considering the dynamics and diversity of wealth expectations, this paper follows and extends Hall's consumption function to establish a new dynamic model of housing wealth effect. People are classified into the rich group and the poor group and a housing wealth effect model is made for each group to explore the relationship between housing wealth effect and social inequality. We get three interesting conclusions which are helpful for further empirical test apart from the former deviation or fallacy.