Theory And Empirical Analysis Of The Real Estate Bubbles

As the most important constitute of a nation's fortune, the development of real estate industry is the great power in pushing the modernization of industry and urban. As a result, bubbles of real estate influence the nation's economy more seriously. The crashes of bubbles in real estate have directly induced the economy and finance crises in Japan and Southeast Asia. Meanwhile, China is facing the double challenges from reformation on finance system and pressure brought by globalization. There have been great enthusiasms in investing in real estate in China. The prices of houses, the investment on real estate industry, the sparing rate is increasing quickly. This has brought fury debates among the officials, the businessmen and the learners on whether there is housing bubbles in China. These problems are not recognized wholly or systematically due to a lack of definition for the concept or the extension of real estate bubbles in China. This paper is due to study these problems and tries to find out the process of bubbles building as well as to analyses the equilibrium prices and bubbles from the real prices.To define the content of the real estate bubbles, we first need to have an accurate definition of the economic bubble. Bubbles is an economic imbalance that could be defined as a certain price level in relation to the basic conditions...