Browsing by Author "Cheng, Shumin"

From the beginning of 2000s, housing markets have been blooming continuously until the housing bubbles busted in US and most European countries. While in China the housing price keeps high speed of growth during the same period, and shows rare sign of bursting or slowing down. This dissertation attempt to explain unusual housing price boom in China from 2000s from international perspectives. The main research questions include: (1) what is the determinants on housing price change? (2) What makes China’s housing market different from the others? (3)Does the boom of housing price in China shows a potential sign of housing bubbles? Investigation on housing price change in Europe and the United States from 2000 to 2015 provides an economic model on determinants of housing price. In this paper, the determinants contains factors from monetary policy, the real economy, and social condition. Quantitative approach, combined with qualitative analysis helps to explore the different pattern of housing price change among China and the other western countries. The result indicate that factors on monetary policy and social condition, such as short term interest rate, credit change, unemployment rate and population change, have more effects on housing price change in the United States and European countries. In China, however, determinants of the real economy and social conditions show more effects on housing price boom. Also in China, several factors, such as inflation rate with credit from financial sectors, appear a highly multicollinearity, which may be explained as a general trend of economic growth as long as high level of government regulation on macroeconomic.