scholarly journals Interactions of Economic Development, Government Intervention and Real Estate Price Based on the Analysis of the Impulse-response Function

2017 ◽  
Vol 6 (2) ◽  
pp. 163
Author(s):  
Shengnan Zhao ◽  
Hong Xu
Keyword(s):  
Economic Development ◽  
Real Estate ◽  
Response Function ◽  
Government Intervention ◽  
Impulse Response Function ◽  
Housing Price ◽  
The Real Estate ◽  
Real Estate Price ◽  
Development Level ◽  
The Government

Using the PVAR model, impulse-response function and variance decomposition, this paper analyzes the interaction between Chinese economic development level, government intervention degree and real estate price, based on the inter-provincial panel data from 2000 to 2013 of China. The results show that the economic development level and the marketization degree have a positive impact on housing price, and in the long run, the self-regulation of marketization is the main factor that affecting the housing price; the government intervention can effectively curb the promotion of real estate price, but if the enthusiasm of the government to implement the intervention is not high, the excessive price of the real estate will hinder the Chinese economic development. The Chinese government should accurately grasp the relationship between real estate price and macroeconomic factors, playing a role in the market to promote the healthy and orderly development of the real estate market. 

scholarly journals Capital Gain Expectations And Efficiency In The Real Estate Markets

2011 ◽  
Vol 6 (4) ◽  
Author(s):  
Shady Kholdy ◽  
Ahmad Sohrabian
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Housing Prices ◽  
Housing Price ◽  
Capital Gain ◽  
Real Estate Markets ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Price ◽  
Economic Fundamentals

Capital gain expectation is known to be an important determinant of housing price hikes during the real estate booms. Empirically, however, specifying the way expectations about current and future economic variables are formed is a dilemma. Although it is reasonable to assume that economic fundamentals have a significant effect on the investors’ expectation about future gains, a number of housing market analysts claim that expectations of housing prices are extrapolative. This study attempts to investigate the mechanism by which investors’ capital gain expectations and psychology are shaped. The results suggest that housing prices are predictable with respect to capital gain expectations only when these expectations are formed by extrapolation of past price appreciations. Considering the large number of empirical evidence on housing market anomaly with respect to capital gain expectations, the results suggest that the extrapolative expectations can better explain the real estate price behavior than expectations that are formed by economic fundamentals.

The Structural Analysis of the Determinants of Shanghai Real Estate Price

2018 ◽  
Vol 14 (13) ◽  
pp. 280
Author(s):  
Zhi Chen
Keyword(s):  
Structural Analysis ◽  
Real Estate ◽  
Econometric Model ◽  
Housing Price ◽  
Supply Side ◽  
Strong Impact ◽  
Real Estate Price ◽  
On Demand ◽  
Potential Factors ◽  
The Government

What are the factors that play the most significant role in affecting Shanghai real estate price? This essay has established an econometric model and uses the perspective of structural analysis to substantiate the real factors that affect the housing price in Shanghai during the 1994— 2015. The essay first collects data from multiple authoritative sources according to potential factors. Then, the essay selects several optimal factors and conducts verification on them. The result is being analyzed. Finally, a conclusion has been reached: factors on the supply side of housing individually have small impact on the price while factors on demand side and policy demonstrate strong impact statistically. This conclusion further suggests that policy implemented by the government with respect to housing price problem in Shanghai could restrain the unreasonable growth to some extent.

Application of ARMA Regression Model of Housing Prices Influence Factors of Xi'an

2013 ◽  
Vol 405-408 ◽  
pp. 3340-3342
Author(s):  
Hui Zhi ◽  
Yue Fan Wang
Keyword(s):  
Real Estate ◽  
Regression Model ◽  
Housing Prices ◽  
Influence Factors ◽  
Housing Price ◽  
The Real Estate ◽  
Housing Price Index ◽  
Long Run ◽  
The Government ◽  
The Impact

By selecting the relevant factors affect the real estate price, with the qualitative analysis method to analyze the housing prices changes of Xi'an, and then establish ARMA regression model of the housing price index, found that the factors exist long-run co-integration. In order to better reflect the actual, the government policy as a dummy variable is introduced into the model to make regression results more significantly, showing that government policies play an important role in the control of the impact on real estate prices.

scholarly journals Prosperity or Real Estate Bubble? Exuberance Probability Index of Real Housing Prices in Chile

2021 ◽  
Vol 9 (3) ◽  
pp. 51
Author(s):  
Byron J. Idrovo-Aguirre ◽  
Francisco J. Lozano ◽  
Javier E. Contreras-Reyes
Keyword(s):  
Real Estate ◽  
Financial Market ◽  
Housing Prices ◽  
Housing Price ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Price ◽  
Mortgage Interest ◽  
Real Estate Bubble ◽  
Probability Index

In this paper, we approached the concept of real estate bubble, analyzing the risk its bursting could generate for the Chilean financial market. Specifically, we analyzed the relationship between real housing prices, the economic activity index, and mortgage interest rates denominated in inflation-linked units from 1994 to 2020. The analysis was based on a second order Markov switching model with the predetermined variables mentioned later, whose parameters were obtained through the expectation–maximization algorithm. Then, we built a probability index as early warning indicator for potential imbalances in the real estate price that could put financial market stability at risk. The indicator is important to evaluate economic policy calibrations in time. A main finding was that the real housing price had a non-linear relationship with economic activity and the mortgage interest rate. Therefore, the evolution of the real estate price has been consistent with fundamental macroeconomic variables, even under a high growth regime, with increases above 12% per year. About 92% of housing price variability derived from changing macrofinancial conditions, suggesting a low margin of speculative behavior.

scholarly journals Information economy: management of educational, innovation, and research determinants

2019 ◽  
pp. 126-141 ◽  
Author(s):  
Serhiy Shkarlet ◽  
Nataliia Kholiavko ◽  
Maksym Dubyna
Keyword(s):  
Economic Development ◽  
Educational Innovation ◽  
Structural Components ◽  
Government Control ◽  
Information Economy ◽  
Research And Innovation ◽  
Development Level ◽  
Economic Paradigm ◽  
The Government ◽  
Smart Specialization

A global trend of economic development is the transition to the formation of a new economic paradigm – the information economy. Ability to generate knowledge and innovation is a prerequisite for improving the competitiveness of the country and its regions; as well, it determines the pace of their social and economic development. In this context, the need to determine the levels of the development of the information economy and its structural components (educational, research and innovation) in the regions of the country is actualized. The purpose of the article is to develop and test a methodological toolkit for assessing the development of the information economy in terms of its structural components, that will allow for the formation of regional clusters by the intensity of educational, innovation and research components, and to identify priority vectors for stimulating the development of the information economy at the macro- and meso-economic levels. When developing methodological tools, the authors proceeded from existing methodological approaches in the world, the possibility of adapting them to national specifics, as well as the potential of statistical bases. In order to cluster the regions of Ukraine by the development level of educational, innovation and research components of the information economy, the k-means algorithm is used. The conducted cluster analysis showed that processes of the formation of the information economy in Ukraine are developing unevenly and are in the stage of formation. More regions of the state fall into the cluster of problematic regions with low levels of the development of educational, innovation and research components; leadership in the development level of the information economy is demonstrated by Kharkiv region, assigned to the cluster of regions with the intensive development of the information economy; in addition, a cluster of perspective regions with the level of the moderate development of the information economy is highlighted. The research made it possible to find out the main problems and identify areas of regional imbalances in the development of the information economy, including in terms of its structural components. In conclusions, the authors proposed directions to improve the approaches to the government control of the processes of the information economy evolvement, based on specific features of the regions, their smart specialization, actual capacities and the achieved level of the development of the information economy components.

scholarly journals Market Integration and Causality: An Application to the Major Apple Markets in India

2021 ◽  
Vol 66 (1) ◽  
Author(s):  
Shilpa S
Keyword(s):  
Impulse Response ◽  
Response Function ◽  
Market Integration ◽  
Impulse Response Function ◽  
Price Transmission ◽  
Fruit Crops ◽  
Causality Test ◽  
Additional Information ◽  
Major Implication ◽  
The Government

Market integration and prices of fruit crops such as apple play an important role in determining the production decisions of apple farmers. In this context, the present study examines the degree of spatial market integration and price transmission across five major apple markets of the country, viz. Shimla, Chandigarh, Delhi, Bengaluru and Mumbai by adopting Johansen’s Cointegration Test, Grangers Causality and Impulse Response Function. The outcomes of the study strongly buttress the cointegration and interdependence of the apple markets in India. To get additional information on whether and in which direction price transmission is occurring between market pairs, Ganger’s Causality Test has been used, which has confirmed Shimla to be the price determining market as it has causal relations with all the selected markets. The Impulse Response Function supported that all the selected markets responded well to standard deviation shock given to any other market. The major implication of the study is further improvement in market integration situation through dissemination of price and arrival data efficiently and developing communication means with in the markets by the government.

scholarly journals International Real Estate Review

2016 ◽  
Vol 19 (2) ◽  
pp. 249-264
Author(s):  
Steve P. Fraser ◽  
◽  
Marcus T. Allen ◽  
Keyword(s):  
Real Estate ◽  
Income Tax ◽  
Residential Development ◽  
Development Project ◽  
Golf Course ◽  
Golf Club ◽  
Development Projects ◽  
The Real Estate ◽  
Real Estate Price ◽  
Price Premiums

Considerable prior research confirms the existence of real estate price premiums associated with golf course amenities in residential development projects. This study examines a unique residential development project in which membership in a golf club is appurtenant to the real estate: ownership of certain (but not all) dwellings in the project includes deeded membership in the project¡¦s golf club. In this development project, golf memberships can only be obtained or disposed of by acquiring or selling the associated dwelling, respectively. The results of this analysis indicates that price premiums associated with appurtenant golf memberships, after controlling for golf course view and other relevant property characteristics, are significantly positive. Furthermore, the results indicate that the magnitude of the price premium for appurtenant golf memberships varies across dwelling types (detached vs. attached) in this project. These findings may be important for housing developers, consumers, lenders, appraisers, and property and income tax authorities.

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