Housing market sentiment and intervention effectiveness: Evidence from China

Zhou, Zhengyi,(2018), Housing market sentiment and intervention effectiveness: Evidence from China. , Emerging Markets Review, UNSPECIFIED

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This paper studies the interaction between housing market sentiment and government interventions. With a unique micro-level data from China, we construct a housing market sentiment index by applying the techniques in the finance literature. This index is significantly correlated with the confidence indexes from official sources. We find that housing market returns increase with contemporaneous sentiment, and high sentiment is followed by low returns. Tightening policies cannot reduce optimism, and high sentiment negatively impacts the effectiveness of tightening policies. This negative impact is especially significant in the zones where housing prices are sensitive to increasing sentiment.
Keywords : Housing market, Sentiment, Government intervention, China Shanghai,, UNSPECIFIED
Journal or Publication Title: Emerging Markets Review
Volume: 35
Item Type: Article
Subjects: Manajemen
Depositing User: Endhar Priyo Utomo
Date Deposited: 30 Dec 2019 08:47
Last Modified: 30 Dec 2019 08:47
URI: https://repofeb.undip.ac.id/id/eprint/1223

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