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House price bubbles in China

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

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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File URL: http://www.sciencedirect.com/science/article/pii/S1043951X12000247
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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
DOI: 10.1016/j.chieco.2012.04.001
Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

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