In order to deal with the rampant increase in housing prices, the Government of the People's Republic of China implemented the home purchase restriction (HPR) policy to curb speculation and prevent housing bubbles. This policy triggered an exogenous demand shock to the housing market. Employing...

"This book contends that the housing markets and shadow banking have been involved in a kind of "dance" over the last two decades. It traces this dance to be between the roles of mortgage markets since the 1980s in both the US and China and the developments of securitization and "shadow banks."...

This paper analyzes the bubble in property values across cities in the U.S. from 1999 through 2005. We find evidence of momentum in house price growth (relative to growth in rents) away from the underlying “fundamentals” throughout the 1980-2005 period; however, momentum increased after 1999....

This paper studies the evolution of U.S. house prices across 45 metropolitan areas from 1980-2012. It uses a version of the Gordon dividend discount model, modelling price as present value of imputed rents as a measure of "fundamentals." This allows for a parsimonious specification, using only...

Facing rampant real estate price surge, Chinese government imposed the home purchase restriction policy to dampen the speculation activity in major cities in 2010. Using a comprehensive dataset covering the real estate markets across various cities, we find that the policy triggered substantial...

It has been widely assumed that there was a bubble in the U.S. housing market after 1999. This paper analyzes the extent to which that was true. We define a bubble as: (1) a regime shift that is characterized by a change in the properties of deviations from the fundamentals of house price...

This paper analyzes the risk-taking behavior of financial intuitions that have guarantees (e.g., banks with deposit insurance or Government Sponsored Enterprises with implicit guarantees) and/or institutions that find it beneficial to develop a reputation for not taking risk. For instance, banks...