A Tale of Two Countries: Comparing the US and Chinese Housing Markets
Autor: | Rose Neng Lai, Robert Van Order |
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Rok vydání: | 2018 |
Předmět: |
Economics and Econometrics
050208 finance business.industry media_common.quotation_subject 05 social sciences Crash Monetary economics Urban Studies Scarcity Momentum (finance) Order (exchange) Accounting Irrational number 0502 economics and business Economics Mean reversion 050207 economics business China Finance Financial services media_common |
Zdroj: | The Journal of Real Estate Finance and Economics. 61:505-547 |
ISSN: | 1573-045X 0895-5638 |
DOI: | 10.1007/s11146-018-9670-3 |
Popis: | The recent surge in property values in China has been similar to the surge in the U.S before the crash in 2007. This raises concerns about whether China is destined to have a crash as well. We estimate similar models of property values for the two countries, in order to compare price dynamics side by side. We find little in common between them. In the U.S. the adjustment process appears prone to “bubbles” in the sense of strong momentum, but Chinese prices have been generally mean reverting, without momentum. This suggests that the recent price rise in China has had more to do with scarcity than with irrational exuberance. |
Databáze: | OpenAIRE |
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