Abstract:

The real estate which includes real estate building, real estate service and land circulation, has already become a pillar indus-try of the national economy. Property sales consist of land cost and building value. The study shows that increase in the income of enter-prises, government and residents will lead to the increase of fixed capital investment, and then promote economic growth, which is the major approach for the real estate industries. The traditional input-output model cannot efficiently depict the approach above, in order to fully reflect the interconnections and constructs of the relation between real estate and national economy. This paper designs and creates an input-occupancy-output table of real estate, and then presents a new partially closed input-occupancy-output model with endogenous fixed capital formation. The model is applied to measure the economic pull of property sales and the results suggest that the economic pull was 13 trillion yuan in 2015, which is significantly larger than the traditional models and more realistic.

Key words: input-occupancy-output table of real estate, endogenous fixed capital formation, partially closed input-occupancy-output model, macroeconomic effects