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House Price Bubbles in China

id: 2032 Date: 20131014 status: published Times:
AuthorYu Ren, Yufei Yuan, Cong Xiong
ContentIn this paper, we apply the theory of rational expectation bubbles to the Chinese house market. Rational expectation bubbles imply that negative returns on house prices are, theoretically, less likely to occur if the bubbles exist and persist. Based on the data of 29 cities in China, we find no evidence to support the existence of bubbles in the housing market.
JEL-CodesR31; E31
KeywordsChina house price; rational expectation bubble; hazard rate
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