Do House Prices Deliver Misleading Information
- DOI
- 10.2991/iea-15.2015.148How to use a DOI?
- Keywords
- fix effects regression; augmented mean group (AMG) estimation; house bubble; misleading information; estate market.
- Abstract
Identifying whether housing prices have misled the market or not at present is an important topic in real estate regulation management in China. Many scholars believe that house prices cannot mislead the market, and try to attribute the rapid rise of house prices to factors such as excessive investments and less municipal governments’ regulation, which evidently is not completely convincing. The significance of this paper is to give a new scientific answer to the questions above through rigorous empirical analyses. The methodologies for analyzing the relationships between house prices and determinants were based on a fix effects model and a dynamic model considering cross section dependence, using fix effects regression and the augmented mean group (AMG) estimation. The estimation results demonstrate that the average residential house prices do not response to any change in different variables (determinants), which are average incomes, real estate investments and construction costs except the house bubbles. Thus, house prices deliver misleading information, which proves that the scholars’ viewpoint is false. Excessive investments from institutions and less regulation from municipal governments might be misled by the false information reflected in the house prices.
- Copyright
- © 2015, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Kuang Ruihu PY - 2015/09 DA - 2015/09 TI - Do House Prices Deliver Misleading Information BT - Proceedings of the AASRI International Conference on Industrial Electronics and Applications (2015) PB - Atlantis Press SP - 596 EP - 599 SN - 2352-5401 UR - https://doi.org/10.2991/iea-15.2015.148 DO - 10.2991/iea-15.2015.148 ID - Ruihu2015/09 ER -