The Impact of House Price on Urban Household Consumption: Micro Evidence from China
Round 1
Reviewer 1 Report
Research in this area are beginning and there is still a good piece of way ahead. The paper is not easy to follow. Reading the abstract, not very clear what problem the authors want to tackle, why and how. I would request the authors to highlight the practical-oriented nature of the paper in the paper core text. Summary could be complemented, it does not indicate the conclusions of the article. I think the article can be approved with major revisions.
Author Response
Please see the attachment
Author Response File: 
Author Response.docx
Reviewer 2 Report
The presented results and approach has been well studied. From the point of view of the analytical structure of China's market modelling in the context of the analysis of the real estate market and their impact on the socio-economic behavior of the community, the paper was elaborated comprehensively.
The conclusions and interpretations on the basis of this research should be refined .
Below the particular comments:
- The title suggests analyses of the price house impact, whether the authors in the analytical part take into account value of property. This must be explained or improved.
- The impact of price changes on real estate generally has a long-term effect (the so-called inertia of the market and information), so how was this taken into account in the the temporary consumption of the public.
- Moreover, on consumption have impact so-called public mood resulting from information on inflation, economic conjunction or economic crisis etc. The housing prices faced effect with some delay. Therefore, the interpretation contained in the article raises doubts.
- Table 2 or 4 – there are a lot of attributes (features) , are they have the same comparable unit as the dependent variable??? – e.g regional characteristic and consumption etc. Moreover the independent variables are not described.
- What about model efficiency verification? The one of them is R 2 which is sometimes low or very low below 30 or 50%. Is this reliable source of knowledge then?
- Generally the paper is too long. Too much noise of information disturbed focusing on the core content of the study.
The paper needs major revision.
Author Response
Please see the attachment
Author Response File: Author Response.docx
Reviewer 3 Report
The authors propose a manuscript titled “The Impact of House Price on Urban Household Consumption: Micro Evidence from China
The article is original, well structured and written. In particular, this study takes into consideration and highlights an interisting topic on discuss on the link between housing price changes and the consumption of urban households in China, using micro survey data from the China Household Finance Survey (CHFS) of more 71,000 families households from 2011 to 2019, examining the impact of property value changes on household consumption. The results show as 1% increase in the value of home equity is caused by rising house prices is associated with an average 0.0034% decrease in household consumption expenditure. Finally, the effect is present in households that own a home and is more pronounced in the eastern and central regions. I have few suggestions, after which the work may be published.
Introduction:
Please add a reference for these statements and correct in the suggested way (in bold)
· Rows 19-20. “China’s housing market has undergone a period of rapid development since the housing market reform in 1998 [choose a reference];
· Row 26. This is clearly at odds with rapidly increasing house prices [choose a reference. In other area of the world the price decrising];
· Rows 63-65. The down-payment ratio in China is at a relatively high level worldwide, with the down-payment ratio for the first home generally at 30% and for the second at around 60%, with some cities even reaching 70% [choose a reference];
· Rows 125-126. Please clarify “We empirically test the precautionary saving mechanism for the effect of property value changes on consumption…”
ü Perrino, E.V.; Wagensommer, R.P. Crop Wild Relatives (CWRs) Threatened and Endemic to Italy: Urgent Actions for Protection and Use. Biology 2022, 11, 193. https://doi.org/10.3390/biology11020193
ü Stinca, A.; Musarella, C.M.; Rosati, L.; Laface, V.L.A.; Licht, W.; Fanfarillo, E. et al. Italian Vascular Flora: New Findings, Updates and Exploration of Floristic Similarities between Regions. Diversity 2021, 13, 600. doi: 10.3390/d13110600
2. Theoretical Framework and 3. Data, Variables and Models
Well done, just a question.
· Rows 155-156. We create a model based on a representative family, assuming that the representative family can survive indefinitely. Why this approach? please clarify;
5. Heterogeneity test
Well done, just a suggestion
· There are some differences in the level of economic development, physical geography, environment, vegetation, and social customs among the eastern, central, and western regions of China, as well as observed between different regions of other continents [e.g. Stinca et al. 2021], and there are also large differences in house prices and house price to income ratios [choose a reference].
Reference to be added:
Ø Stinca, A.; Musarella, C.M.; Rosati, L.; Laface, V.L.A.; Licht, W.; Fanfarillo, E.; Wagensommer, R.P.; Galasso, G.; Fascetti, S.; Esposito, A.; Fiaschi, T.; Nicolella, G.; Chianese, G.; Ciaschetti, G.; Salerno, G.; Fortini, P.; Di Pietro, R.; Perrino, E.V.; Angiolini, C.; De Simone, L.; Mei, G. Italian Vascular Flora: New Findings, Updates and Exploration of Floristic Similarities between Regions. Diversity 2021, 13, 600. https://doi.org/10.3390/d13110600
Author Response
Please see the attachment
Author Response File: Author Response.docx
Round 2
Reviewer 2 Report
The article has been amended in accordance with the reviewer's suggestions. I recommend extending the explanation regarding the impact of macroeconomic factors on residential property prices indices in Europe as well.
