| Summary: | 碩士 === 輔仁大學 === 金融與國際企業學系金融碩士在職專班 === 103 === The purpose of this study is to explore the relationship between of stock index and home prices indices. Two mechanisms can cause or interpret this relationship, one is wealth effect and another is Credit-Price Effect. In this study, we use the sample of monthly 112 Taiwan-Weighted Stock Index, Taipei City home prices indices and New Taipei City home prices indices in the time rang from January 2005 to April 2014.
The results include:
1. In some conditions, Taiwan-Weighted Stock Index will affect the New Taipei City house prices indices, and Taipei City house prices indices will affect the New Taipei City home prices indices.
3. Taipei City home prices indices and New Taipei City house prices indices have no influence on Taiwan-Weighted Stock Index.
4. Taiwan-Weighted Stock Index, Gross Domestic Product, price level and interest rates all significantly affect Taipei City house prices indices and New Taipei City house prices indices, where only interest rate has a negative effect.
5. The stock index leads house prices indices and the wealth effect is confirmed. But the house prices indices didn’t affect the stock index.
We find that Taiwan-Weighted Stock Index will affect the New Taipei City house prices indices, but Taiwan-Weighted Stock Index has few association with Taipei City house prices indices. It is different from some literature that indicates the Stock Index and have the more influence on high house prices areas.
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