| Abstract | This paper first defines housing industry as construction and real estate sectors relative to common houses, then proposes an accounting method to evaluate the value added of housing industry and its upstream and downstream sectors based on input-output analysis, and applies stress testing method to research that how much price fluctuations of common houses will affect sector and whole economy. Empirical results show that construction, manufacture of nonmetallic mineral products and other sectors have close relation with housing market, but there are more shock to real estate, financial intermediation and other tertiary sectors in stress scenarios. For overall economy, the growth rate of GDP in China will respectively decrease 2.1%, 2.7% and 3.6% in mild, moderate and severe scenarios. In order to hedge economic downside risk induced by the adjustment of sales price of common houses, we should attract more sectors to join in the construction of ensuring houses, and let the pulling effect of ensuring houses give full play on the national economy. |