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A Quantitative Analysis for House Price Target of Real Estate Control Policy in China

  • Ziyang Geng
  • Li Zhang
  • Xueting Li
Conference paper
Part of the Lecture Notes in Electrical Engineering book series (LNEE, volume 241)

Abstract

A new set of real estate control policies have been carrying out to inhibit soaring house price and deal volume is going down rapidly. Not only customer and real estate firms are all care about the house price target, but also it is an important index for government to adjust their policies. Taking into account that customer is the weaker side comparing with real estate firms, we can conclude that customer will buy a house on the price equaling to their expected value for the house once the control policies have all done. Then we will give a new interpretation to Myerson and Satterthwaite’s model in order to do quantitative analysis on house price. Finally we will know that government should only take some care not to make the lower limit of expected value range below the upper limit of costs range, otherwise house price must follow the analytic result to maximize society remain when deal volume reach appropriate level.

Keywords

Principal-agent theory Control policy House price Adjustment target 

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References

  1. 1.
    Glaeser EL, Gyourko J, Saks RE (2004) Why have housing prices gone up? American Economic Review 95(2):329–333Google Scholar
  2. 2.
    Myerson RB, Satterthwaite MA (1983) Efficient mechanisms for bilateral trading. Journal of Economic Theory 29(2):265–281Google Scholar
  3. 3.
    Fudenberg D, Tirole J (2002) Game theory. China Renmin University Press, BeijingGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Management SchoolChengdu University of TCMChengduPeople’s Republic of China
  2. 2.Business SchoolSichuan UniversityChengduPeople’s Republic of China

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