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Housing Shock and Online Consumer Behavior

Office of Alumni and External Relations    2021-10-11

Subject: Housing Shock and Online Consumer Behavior

Guest: Long Wang, Assistant Professor, ShanghaiTech University

Host: Le Xu, Assistant Professor, Antai

Time: Friday, Oct 15, 2021,  14:00-15:30

Venue: A511, Antai


Abstract:

To establish the causal relationship between housing price appreciation and online consumer behavior, this study exploits a proprietary dataset assembled from October 1, 2016 to December 31, 2018 by the largest e-commerce company in China. In order to overcome the empirical challenges faced by existing literature due to the non-random nature of housing price changes, this study investigates a unique institutional setting in China, namely the announcement of the newest national-level special economic zone, Xiong'an new area, on April 1, 2017, as an exogenous shock to the housing price. The study focuses on three areas of interest. First, we examine how exogenous and unanticipated housing wealth shocks impact households' online consumer behaviors. Second, we study the dynamic change of online consumer behaviors before and after the housing shock, and determine whether the behavioral responses persist in the long run. Third, we explore the underlying mechanisms through which the housing shock affects consumer behaviors. In particular, we attempt to disentangle the collateral effects from the wealth effects and the rent effects.

Bio:

Long Wang is an assistant professor in the School of Entrepreneurship and Management at the ShanghaiTech University in China. He received a Ph.D. in Real Estate from the National University of Singapore in 2018. His research interests lie in urban economics, real estate finance, and Chinese economy. He has published in academic journals such as Journal of Public Economics, Journal of Urban Economics, Real Estate Economics, and Journal of Real Estate Research.

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