Working Paper: NBER ID: w25297
Abstract: Since the 1990s, China's real estate market has experienced a dramatic and long-lasting boom across China. This boom has led to substantial concerns in both academic and policy circles that the rising housing prices might have developed into a gigantic housing bubble, which might eventually burst and damage China’s financial system and economy. Motivated by this concern, this paper reviews the historical development of China’s real estate market, describes the real estate boom, and discusses its links to households, local governments, firms and the financial system.
Keywords: No keywords provided
JEL Codes: R21; R28; R3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| housing reforms (R21) | housing prices (R31) |
| reliance on land sales (R52) | local government finances (H70) |
| bank lending practices (G21) | financial stability (G28) |
| housing prices (R31) | household financial stability (D14) |