Effect Analysis Over the Stock Market to Housing Disbursement

First, this article looked back upon the channels that the stock market affects the real estate´s disbursement and made a brief literature summary on the effect that the stock market brings about to the real estate´s disbursement. Next, the article put up a linear model on the basis of Modigliani life cycle model, which shows the stock market´s effect on the real estate´s disbursement, and carried on empirical analysis over the examples from the year 1997 to 2007, which indicates the effect of the stock price´s growth on the real estate´s disbursement is not linear, unstable and not sustainable. So the article thinks that the root lies in the stock market´s frequent vibration, high ratio of stock throw-over, and the lack of conditions on ¿the permanent income hypothesis¿.