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House price bubbles in China

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  • Ren, Yu
  • Xiong, Cong
  • Yuan, Yufei

Abstract

In this paper, we apply the theory of rational expectation bubbles proposed by Blanchard and Watson (1983) to the Chinese housing market. The theory implies that negative returns on house prices are less likely to occur if the bubbles exist. Based on data from 35 cities in China, we find no evidence to support the existence of such bubbles in the Chinese housing market.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 23 (2012)
Issue (Month): 4 ()
Pages: 786-800

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Handle: RePEc:eee:chieco:v:23:y:2012:i:4:p:786-800

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Web page: http://www.elsevier.com/locate/chieco

Related research

Keywords: China house price; Rational expectation bubble; Hazard rate;

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References

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Citations

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Cited by:
  1. Dong, Xiaofang & Fu, Shihe & Yuan, Yufei, 2012. "Impact fees and real estate prices: evidence from 35 Chinese cities," MPRA Paper 48047, University Library of Munich, Germany.
  2. repec:wyi:journl:002181 is not listed on IDEAS
  3. Xi Chen & Michael Funke, 2013. "Real-Time Warning Signs of Emerging and Collapsing Chinese House Price Bubbles," National Institute Economic Review, National Institute of Economic and Social Research, vol. 223(1), pages R39-R48, February.
  4. repec:asi:ajoerj:2013:p:785-807 is not listed on IDEAS
  5. Tsangyao Chang & Wen-Chi Liu & Goodness C. Aye & Rangan Gupta, 2013. "Are there Housing Bubbles in South Africa? Evidence from SPSM-Based Panel KSS Test with a Fourier Function," Working Papers 201377, University of Pretoria, Department of Economics.
  6. Zhang, Dingsheng & Cheng, Wenli & Ng, Yew-Kwang, 2013. "Increasing returns, land use controls and housing prices in China," Economic Modelling, Elsevier, vol. 31(C), pages 789-795.

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