Tightening policy and housing price bubbles: Examining an episode in the Chinese housing market.

ABSTRACT: Housing markets are often characterized by price bubbles, and governments have instituted policies to stabilize them. Under this circumstance, this study addresses the following questions. (1) Does policy tightening change expectations in housing prices, revealing a regime change? (2) If so, what determines the housing market's reaction to policy tightening? To answer these questions, we examine the effects of policy tightening that occurred in 2016 on the Chinese housing market where a price boom persisted in the post-2000 period. Using a log-periodic power law model and employing a modified multi-population genetic algorithm for parameter estimation, we find that tightening policy in China did not cause a market crash; instead, shifting the Chinese housing market from faster-than-exponen

SUBMITTER: Ahn K 

PROVIDER: S-EPMC11379212 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature