Publication Type

Journal Article

Publication Date

1-2006

Abstract

The dramatic rise of house prices in many cities of China has brought huge attention from both the governmental and academic circles. There is a huge debate on whether the increasing house prices are driven by market fundamentals or just by speculation. Like Levin and Wright (1997a, 1997b), we decompose house prices in China into fundamental and non−fundamental components. We also consider potential nonlinear feedback from the historical growth rate of house prices on the current house prices and propose a semiparametric approach to estimate the speculative components in the model. We demonstrate that the non−fundamental part contributes a relatively small proportion of the rise of house prices in China.

Discipline

Econometrics

Research Areas

Econometrics

Publication

International Economic Review

Volume

3

Issue

1

First Page

1

Last Page

8

ISSN

0020-6598

Publisher

Wiley: 24 months

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

https://core.ac.uk/download/pdf/6420718.pdf

Included in

Econometrics Commons

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