| ID | 154449 |
| Title Proper | China's housing market imbalance from 2003 to 2016 |
| Other Title Information | an analysis based on the user cost approach |
| Language | ENG |
| Author | Lai, Pingyao |
| Summary / Abstract (Note) | During 2003–2016, China experienced an unprecedented housing market imbalance. The present paper applies the user cost approach to conduct a systematic analysis of this important phenomenon, examines the policy factors behind the persistent housing market imbalance, and explores policy options to correct the housing market imbalance. We found that during most of 2003–2016, the user cost was significantly lower than 2 percent, caused by high income growth, rapid credit expansion and low interest rates, which led to the persistent housing market imbalance. Therefore, the government should control bank credit and introduce property taxes during the possession of houses. |
| `In' analytical Note | China and World Economy Vol. 25, No.4; Jul-Aug 2017: p.44–59 |
| Journal Source | China and World Economy 2017-08 25, 4 |
| Key Words | Interest Rate ; Income Growth ; Bank Credi ; Housing Market Imbalance ; User Cost Approach |