AcademicsWorking Papers

House Price Bubbles in China
Yu Ren, Yufei Yuan, Cong Xiong
2032 20131014 (published) Views:24399
In this paper, we apply the theory of rational expectation bubbles to the Chinese house market. Rational expectation bubbles imply that negative returns on house prices are, theoretically, less likely to occur if the bubbles exist and persist. Based on the data of 29 cities in China, we find no evidence to support the existence of bubbles in the housing market.
JEL-Codes: R31; E31
Keywords: China house price; rational expectation bubble; hazard rate


Download full text Downloads:23907