Format:
1 Online-Ressource (19 p)
Content:
This article analyzed the structure of the housing market bubble, and developed a housing price growth model based on previous researches. Using the empirical data, we found that there is a self-repairing mechanism of bubble in China's current housing market. We also found that the existing housing market bubble in China is growing bigger and bigger. The deviation of the value between the market price and the fundamental value of real estate is nearly 40%. The results presented in the model also show the two key facts of the growth rate of housing price is the growth rate of both M2 and permanent income of household. To the government, we advise that the most effective way to control or even eliminate the housing market bubble is to adopt and stick to a tighter monetary policy
Note:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 20, 2011 erstellt
Language:
English
DOI:
10.2139/ssrn.1868365
