SPECIAL ISSUE PAPER
Heterogeneous Demand, Government Intervention and Housing Price: Chaos Analysis Perspective
Qian Sun 1, 2
,  
Jichang Dong 3  
,  
Yong Tang 1, 4
 
 
More details
Hide details
1
Management School of Hunan City University, Yiyang, Hunan, CHINA
2
Department of Technology and Society, State University of New York at Stony Brook, Stony Brook, NY, USA
3
School of Innovation and Entrepreneurship, University of Chinese Academy of Sciences, Beijing, CHINA
4
Department of Sociology, State University of New York College at Buffalo, Buffalo, NY, USA
Online publish date: 2017-11-24
Publish date: 2017-11-24
 
EURASIA J. Math., Sci Tech. Ed 2017;13(12):8177–8184
KEYWORDS
TOPICS
This article belongs to the special issue "Problems of Application Analysis in Knowledge Management and Science-Mathematics-Education".
ABSTRACT
Started from the microbodies of real estate market, this paper supposed real estate price is mainly determined by the bodies’ market behaviors and related interactions, while the demanders in real estate market are heterogeneous. and local government and central government are with different purposes in regulating the market. For these considerations above, this paper constructed a real estate price deterministic model, and conducted a numeric simulation. The main findings include: the price fluctuation of real estate market has chaotic characteristics, and the systematic parameters have a comparatively big effect on market equilibrium. The sensitivity that both consumption demanders and real estate developers have on real estate price is positively correlated to real estate market equilibrium. In the long term, the price of real estate market will be approaching to its actual value.
 
REFERENCES (24)
1.
Abraham, J. M., Patric, H. (1994). Hendershott. Bubbles in metropolitan housing markets. No. w4774. National Bureau of Economic Research.
 
2.
Baffoe-Bonnie, J. (1998). The dynamic impact of macroeconomic aggregates on housing prices and stock of houses: a national and regional analysis. The Journal of Real Estate Finance and Economics, 17(2), 179-197.
 
3.
Bramley, G. (1993). Land-use planning and the housing market in Britain: the impact on housebuilding and house prices. Environment and Planning, A, 25(7), 1021-1051.
 
4.
De Grauwe, P., Dewachter, H., & Embrechts, M. (1995). Exchange rate theory: chaotic models of foreign exchange markets. Journal of International Economics, 39(2), 185-187.
 
5.
De Long, J. B., Shleifer, A., Summers, L. H., & Waldmann, R. J. (1990). Noise trader risk in financial markets. Journal of political Economy, 98(4), 703-738.
 
6.
Del Negro, M., & Otrok, C. (2007). 99 Luftballons: Monetary policy and the house price boom across US states. Journal of Monetary Economics, 54(7), 1962-1985.
 
7.
Dong, Z.-Y, Guan, H., & Ming, Y. (2010). Factor Analysis on China’s Real Estate Price: An Empirical Research of Panel Data. Journal of China University of Geosciences (Social Sciences Edition), 10(2), 98-103.
 
8.
Fortura, P., & Kushner, J. (1986). Canadian Inter‐City House Price Differentials. Real Estate Economics, 14(4), 525-536.
 
9.
Green, R. K. (1999). Land use regulation and the price of housing in a suburban Wisconsin County. Journal of Housing Economics, 8(2), 144-159.
 
10.
Harter-Dreiman, M. (2004). Drawing inferences about housing supply elasticity from house price responses to income shocks. Journal of Urban Economics, 55(2), 316-337.
 
11.
Hwang, M., & Quigley, J. M. (2006). Economic fundamentals in local housing markets: evidence from US metropolitan regions. Journal of Regional Science, 46(3), 425-453.
 
12.
Ioannides, Y. M., & Stuart, S. (1994). Rosenthal. Estimating the consumption and investment demands for housing and their effect on housing tenure status. The Review of Economics and Statistics, 76(1), 127-141.
 
13.
Kiel, K. A., & Zabel, J. E. (2008). Location, location, location: The 3L Approach to house price determination. Journal of Housing Economics, 17(2), 175-190.
 
14.
Krainer, J. (2005). Housing markets and demographics. FRBSF Economic Letter, 21, 1-3.
 
15.
Li, W., Rui, Y. (2007). The Life‐Cycle Effects of House Price Changes. Journal of Money, Credit and Banking, 39(6), 1375-1409.
 
16.
Liang, Y.-F., Gao, T.-m. (2007). Empirical Analysis on Real Estate Price Fluctuationin Different Provinces of China. Economic Research Journal, 8, 133-142.
 
17.
Lin, C., & Lin, S. (1999). An estimation of elasticities of consumption demand and investment demand for owner-occupied housing in Taiwan: a two-period model. International Real Estate Review, 2(1), 110-125.
 
18.
Mankiw, N. G., & Weil, D. N. (1989). The baby boom, the baby bust, and the housing market. Regional Science and Urban Economics, 19(2), 235-258.
 
19.
McGibany, J. M., & Nourzad, F. (2004). Do lower mortgage rates mean higher housing prices? Applied Economics, 36(4), 305-313.
 
20.
McQuinn, K., & O’Reilly, G. (2008). Assessing the role of income and interest rates in determining house prices. Economic Modeling, 25(3), 377-390.
 
21.
Pi, S., Shuo, L., & Liu, L. (2017). Dynamic Competitive Behavior of Enterprises in Multi-Network: Evidence from Chinese Animation Industry. Eurasia Journal of Mathematics, Science & Technology Education, 13(8), 5185-5203.
 
22.
Roche, M. J. (2001). The rise in house prices in Dublin: bubble, fad or just fundamentals. Economic Modeling, 18(2), 281-295.
 
23.
Wang, Y. P. (2016). A Study on Kinmen Resident’s Perception of Tourism Development and Culture Heritage Impact. Eurasia Journal of Mathematics, Science & Technology Education, 12(12).
 
24.
Zhou, J.-k. (2005). Monetary Policy, Bank Lending and Housing Price——An Empirical Analysis Based on 4 City of China. Finance & Trade Economics, 5, 22-27.
 
eISSN:1305-8223
ISSN:1305-8215