The special effect of interest rate cuts on housing prices
Abstract
This study uses theoretical models and empirical research to explain that interest rates affect the structure of housing price formation and correction rather than affect the price alone. In particular, when interest rates are substantially reduced, the correction of housing prices toward fundamentals is absent; in other words, a housing bubble is likely to occur. This study first illustrates a model for explaining home price behavior. Data from the Case-Shiller U.S. National Home Price Index between January 1975 and August 2020 are adopted to observe the behavior of home prices. The empirical results show that the correction and bubble behavior of U.S. home prices have exhibited significant structural changes. Variation in money supply fails to explain the structural changes, however, interest rate variation can significantly affect the structural changes. According to the results, when interest rates rise or fall slightly, the correction of home prices toward the equilibrium value is significant. However, when interest rates fall substantially, the bubble behavior of home prices is significant. For governments that adopt low interest rates to revitalize the economy, the results of this study provide special reference values. Governments should provide additional intervention in housing markets when an extremely low interest rate exists.
Keyword : home price behavior, home price bubble, rational bubbles, monetary policy, interest rate, money supply
How to Cite
Lin, C.-C., & Tsai, I.-C. (2021). The special effect of interest rate cuts on housing prices. Journal of Business Economics and Management, 22(3), 776-798. https://doi.org/10.3846/jbem.2021.14576
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Abraham, J. M., & Hendershott, P. H. (1996). Bubbles in metropolitan housing markets. Journal of Housing Research, 7(2), 191–207. https://www.jstor.org/stable/24832859
André, C., Gil-Alana, L. A., & Gupta, R. (2014). Testing for persistence in housing price-to-income and price-to-rent ratios in 16 OECD countries. Applied Economics, 46(8), 2127–2138. https://doi.org/10.1080/00036846.2014.896988
Bai, J., & Perron, P. (1998). Estimating and testing linear models with multiple structural changes. Econometrica, 66(1), 47–78. https://doi.org/10.2307/2998540
Bai, J., & Perron, P. (2003). Computation and analysis of multiple structural change models. Journal of Applied Econometrics, 18(1), 1–22. https://doi.org/10.1002/jae.659
Blanchard, O., & Watson, M. (1982). Bubbles, rational expectations and financial markets. In P. Wachtel (Ed.), Crises in the economic and financial structure: Bubbles, bursts, and shocks. Lexington, MA. https://doi.org/10.3386/w0945
Bourassa, S. C, & Yin, M. (2008). Tax deductions, tax credits and the homeownership rate of young urban adults in the United States. Urban Studies, 45(5–6), 1141–1161. https://doi.org/10.1177/0042098008089981
Capozza, D. R., Hendershott, P. H., & Mack, C. (2004). An anatomy of price dynamics in illiquid markets: Analysis and evidence from local housing markets. Real Estate Economics, 32(1), 1–32. https://doi.org/10.1111/j.1080-8620.2004.00082.x
Capozza, D. R., Hendershott, P. H., Mack, C., & Mayer, C. J. (2002). Determinants of real house price dynamics (NBER Working Paper No. 9262). https://doi.org/10.3386/w9262
Case, K. E., & Shiller, R. J. (1989). The efficiency of the market for single-family homes. American Economic Review, 79(1), 125–137. https://www.jstor.org/stable/1804778
Case, K. E., & Shiller, R. J. (2003). Is there a bubble in the housing market? Brookings Papers on Economic Activity, 2003(2), 299–362. https://doi.org/10.1353/eca.2004.0004
Chung, K. (2006). Asset prices and monetary liquidity in Korea. Journal of Korea Economic Studies, 17, 257–287.
Congdon, T. (2005). Money and asset prices in boom and bust (IEA Hobart paper No. 153). https://doi.org/10.2139/ssrn.839866
Ferrero, A. (2015). House price booms, current account deficits, and low interest rates. Journal of Money, Credit and Banking, 47(S1), 261–293. https://doi.org/10.1111/jmcb.12202
Fischer, M. M., Huber, F., Pfarrhofer, M., & Staufer-Steinnocher, P. (2019). The dynamic impact of monetary policy on regional housing prices in the United States. Real Estate Economics, 1–30 (in Press). https://doi.org/10.1111/1540-6229.12274
Gallin, J. (2006). The long-run relationship between house prices and income: Evidence from local housing markets. Real Estate Economics, 34(3), 417–438. https://doi.org/10.1111/j.1540-6229.2006.00172.x
Gao, A., Lin, Z., & Na, C. F. (2009). Housing market dynamics: Evidence of mean reversion and downward rigidity. Journal of Housing Economics, 18(3), 256–266. https://doi.org/10.1016/j.jhe.2009.07.003
Genesove, D. (2003). The nominal rigidity of apartment rents. Review of Economics and Statistics, 85(4), 844–853. https://doi.org/10.1162/003465303772815763
Gilles, C., & LeRoy, S. F. (1992). Bubbles and charges. International Economic Review, 33(2), 323–339. https://doi.org/10.2307/2526897
Gimeno, R., & Martínez-Carrascal, C. (2010). The relationship between house prices and house purchase loans: The Spanish case. Journal of Banking & Finance, 34(8), 1849–1855. https://doi.org/10.1016/j.jbankfin.2009.12.011
Gouteron, S., & Szpiro, D. (2005). Excess monetary liquidity and asset prices (Banque de France Working paper No. NER-E 131). https://doi.org/10.2139/ssrn.1703438
Guo, S., & Li, C. (2011). Excess liquidity, housing price booms and policy challenges in China. China & World Economy, 19(6), 76–91. https://doi.org/10.1111/j.1749-124X.2011.01267.x
Hanck, C., & Prüser, J. (2020). House prices and interest rates: Bayesian evidence from Germany. Applied Economics, 52(28), 3073–3089. https://doi.org/10.1080/00036846.2019.1705242
Hartzell, D., Hekman, J. S., & Miles, M. E. (1987). Real estate returns and inflation. Real Estate Economics, 15(1), 617–637. https://doi.org/10.1111/1540-6229.00407
Himmelberg, C., Mayer, C., & Sinai, T. (2005). Assessing high house prices: Bubbles, fundamentals and misperceptions. Journal of Economic Perspectives, 19(4), 67–92. https://doi.org/10.1257/089533005775196769
Huang, J., & Shen, G. Q. (2017). Residential housing bubbles in Hong Kong: Identification and explanation based on GSADF test and dynamic probit model. Journal of Property Research, 34(2), 108–128. https://doi.org/10.1080/09599916.2017.1321574
Ibbotson, R. G., & Siegel, L. B. (1984). Real estate returns: A comparison with other investments. Real Estate Economics, 12(3), 219–242. https://doi.org/10.1111/1540-6229.00320
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(2–3), 231–254. https://doi.org/10.1016/0165-1889(88)90041-3
Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica, 59(6), 1551–1580. https://doi.org/10.2307/2938278
Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration – with applications to the demand for money. Oxford Bulletin Economics and Statistics, 52(2), 169–210. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x
Jordà, Ò., Schularick, M., & Taylor, A. M. (2015). Betting the house. Journal of International Economics, 96(S1), S2–S18. https://doi.org/10.1016/j.jinteco.2014.12.011
Kallberg, J. G., Liu, C. H., & Pasquariello, P. (2014). On the price comovement of U.S. residential real estate markets. Real Estate Economics, 42(1), 71–108. https://doi.org/10.1111/1540-6229.12022
Kim, B. H., & Min, H. G. (2011). Household lending, interest rates and housing price bubbles in Korea: Regime switching model and Kalman filter approach. Economic Modelling, 28(3), 1415–1423. https://doi.org/10.1016/j.econmod.2011.02.001
Kishor, N. K., & Marfatia, H. A. (2017). The dynamic relationship between housing prices and the macroeconomy: Evidence from OECD countries. Journal of Real Estate Finance and Economics, 54, 237–268. https://doi.org/10.1007/s11146-015-9546-8
Kuhle, J. (1987). Portfolio diversification and returns benefits – Common stock vs. real estate investment trusts. Journal of Real Estate Research, 2(2), 1–9. https://www.jstor.org/stable/44095201
Li, Y. M. (2015). The asymmetric house price dynamics: Evidence from the California market. Regional Science and Urban Economics, 52, 1–12. https://doi.org/10.1016/j.regsciurbeco.2015.02.002
Lin, Y.-J., Chang, C.-O., & Chen, C.-L. (2014). Why homebuyers have a high housing affordability problem: Quantile regression analysis. Habitat International, 43, 41–47. https://doi.org/10.1016/j.habitatint.2014.01.013
Malpezzi, S. (1999). A simple error correction model of house prices. Journal of Housing Economics, 8(1), 27–62. https://doi.org/10.1006/jhec.1999.0240
McDonald, J. F., & Stokes, H. H. (2013). Monetary policy and the housing bubble. Journal of Real Estate Finance and Economics, 46(3), 437–451. https://doi.org/10.1007/s11146-011-9329-9
Mikhed, V., & Zemcík, P. (2009). Do house prices reflect fundamentals? Aggregate and panel data evidence. Journal of Housing Economics, 18(2), 140–149. https://doi.org/10.1016/j.jhe.2009.03.001
Miles, D., & Pillonca, V. (2008). Financial innovation and European housing and mortgage markets. Oxford Review of Economic Policy, 24(1), 145–175. https://doi.org/10.1093/oxrep/grn005
Moons, C., & Hellinckx, K. (2019). Did monetary policy fuel the housing bubble? An application to Ireland. Journal of Policy Modeling, 41(2), 294–315. https://doi.org/10.1016/j.jpolmod.2019.03.006
Park, S. W., Bahng, D. W., & Park, Y. W. (2010). Price run-up in housing markets, access to bank lending and house prices in Korea. Journal of Real Estate Finance and Economics, 40(3), 332–367. https://doi.org/10.1007/s11146-008-9143-1
Paul, P. (2020). The time-varying effect of monetary policy on asset prices. Review of Economics and Statistics, 102(4), 690–704. https://doi.org/10.1162/rest_a_00840
Pavlidis, E., Yusupova, A., Paya, I., Peel, D., Martínez-García, E., Mack, A., & Grossman, V. (2016). Episodes of exuberance in housing markets: In search of the smoking gun. Journal of Real Estate Finance and Economics, 53, 419–449. https://doi.org/10.1007/s11146-015-9531-2
Phillips, P. C. B. (1995). Fully modified least squares and vector autoregression. Econometrica, 63(5), 1023–1078. https://doi.org/10.2307/2171721
Phillips, P. C. B., & Hansen, B. E. (1990). Statistical inference in instrumental variables regression with I(1) processes. Review of Economic Studies, 57(1), 99–125. https://doi.org/10.2307/2297545
Robstad, Ø. (2018). House prices, credit and the effect of monetary policy in Norway: Evidence from structural VAR models. Empirical Economics, 54, 461–483. https://doi.org/10.1007/s00181-016-1222-1
Rubens, J., Bond, M., & Webb, J. (1989). The inflation-hedging effectiveness of real estate. Journal of Real Estate Research, 4(2), 45–56. https://doi.org/10.1080/10835547.1989.12090578
Ryczkowski, M. (2019). Money, credit, house prices and quantitative easing – the wavelet perspective from 1970 to 2016. Journal of Business Economics and Management, 20(3), 546–572. https://doi.org/10.3846/jbem.2019.9859
Scherbina, A., & Schlusche, B. (2014). Asset price bubbles: A survey. Quantitative Finance, 14(4), 589– 604. https://doi.org/10.1080/14697688.2012.755266
Shiller, R. J. (2009). Unlearned lessons from the housing bubble. The Economists’ Voice, 6(7), 1–2. https://doi.org/10.2202/1553-3832.1616
Shimizu, C., Nishimura, K. G., & Watanab, T. (2010). Residential rents and price rigidity: Micro structure and macro consequences. Journal of The Japanese and International Economies, 24(2), 282–299. https://doi.org/10.1016/j.jjie.2009.12.006
Sommer, K., Sullivan, P., & Verbrugge, R. (2013). The equilibrium effect of fundamentals on house prices and rents. Journal of Monetary Economics, 60(7), 854–870. https://doi.org/10.1016/j.jmoneco.2013.04.017
Su, C., Yin, X., Tao, R., Lobonţ, O.-R., & Moldovan, N.-C. (2018). Are there significant linkages between two series of housing prices, money supply and short-term international capital? – Evidence from China. Digital Signal Processing, 83, 148–156. https://doi.org/10.1016/j.dsp.2018.08.017
Su, C.-W., Wang, X.-Q., Tao, R., & Chang, H.-L. (2019). Does money supply drive housing prices in China? International Review of Economics and Finance, 60, 85–94. https://doi.org/10.1016/j.iref.2018.12.013
Tsai, I.-C. (2015a). Monetary liquidity and the bubbles in the U.S. housing market. International Journal of Strategic Property Management, 19(1), 1–12. https://doi.org/10.3846/1648715X.2014.973465
Tsai, I.-C. (2015b). Monetary policy and bubbles in the national and regional UK housing markets. Urban Studies, 52(8), 1471–1488. https://doi.org/10.1177/0042098014534904
Tsai, I.-C. (2020). Price rigidity and vacancy rates: The framing effect on rental housing markets. The Journal of Real Estate Finance and Economics. https://doi.org/10.1007/s11146-020-09791-4
Valadkhani, A., Nguyen, J., & O’Brien, M. (2019). Asymmetric responses of house prices to changes in the mortgage interest rate: Evidence from the Australian capital cities. Applied Economics, 51(53), 5781–5792. https://doi.org/10.1080/00036846.2019.1619026
Wang, X.-Q., L.-N. Hao, Tao, R., & Su, C.-W. (2020). Does money supply growth drive housing boom in China? A wavelet-based analysis. Journal of Housing and the Built Environment, 35, 125–141. https://doi.org/10.1007/s10901-019-09668-w
Yin, X.-C., Tao, R., Chai, K.-C., & Su, C.-W. (2020). A revisit on linkage of hot money, money supply and housing prices in China. Journal of Housing and the Built Environment, 35, 617–632. https://doi.org/10.1007/s10901-019-09704-9
Zhang, C., Jia, S., & Yang, R. (2016). Housing affordability and housing vacancy in China: The role of income inequality. Journal of Housing Economics, 33, 4–14. https://doi.org/10.1016/j.jhe.2016.05.005
Zorn, P. M. (1988). An analysis of household mobility and tenure choice: An empirical study of Korea. Journal of Urban Economics, 24(2), 113–128. https://doi.org/10.1016/0094-1190(88)90034-4
André, C., Gil-Alana, L. A., & Gupta, R. (2014). Testing for persistence in housing price-to-income and price-to-rent ratios in 16 OECD countries. Applied Economics, 46(8), 2127–2138. https://doi.org/10.1080/00036846.2014.896988
Bai, J., & Perron, P. (1998). Estimating and testing linear models with multiple structural changes. Econometrica, 66(1), 47–78. https://doi.org/10.2307/2998540
Bai, J., & Perron, P. (2003). Computation and analysis of multiple structural change models. Journal of Applied Econometrics, 18(1), 1–22. https://doi.org/10.1002/jae.659
Blanchard, O., & Watson, M. (1982). Bubbles, rational expectations and financial markets. In P. Wachtel (Ed.), Crises in the economic and financial structure: Bubbles, bursts, and shocks. Lexington, MA. https://doi.org/10.3386/w0945
Bourassa, S. C, & Yin, M. (2008). Tax deductions, tax credits and the homeownership rate of young urban adults in the United States. Urban Studies, 45(5–6), 1141–1161. https://doi.org/10.1177/0042098008089981
Capozza, D. R., Hendershott, P. H., & Mack, C. (2004). An anatomy of price dynamics in illiquid markets: Analysis and evidence from local housing markets. Real Estate Economics, 32(1), 1–32. https://doi.org/10.1111/j.1080-8620.2004.00082.x
Capozza, D. R., Hendershott, P. H., Mack, C., & Mayer, C. J. (2002). Determinants of real house price dynamics (NBER Working Paper No. 9262). https://doi.org/10.3386/w9262
Case, K. E., & Shiller, R. J. (1989). The efficiency of the market for single-family homes. American Economic Review, 79(1), 125–137. https://www.jstor.org/stable/1804778
Case, K. E., & Shiller, R. J. (2003). Is there a bubble in the housing market? Brookings Papers on Economic Activity, 2003(2), 299–362. https://doi.org/10.1353/eca.2004.0004
Chung, K. (2006). Asset prices and monetary liquidity in Korea. Journal of Korea Economic Studies, 17, 257–287.
Congdon, T. (2005). Money and asset prices in boom and bust (IEA Hobart paper No. 153). https://doi.org/10.2139/ssrn.839866
Ferrero, A. (2015). House price booms, current account deficits, and low interest rates. Journal of Money, Credit and Banking, 47(S1), 261–293. https://doi.org/10.1111/jmcb.12202
Fischer, M. M., Huber, F., Pfarrhofer, M., & Staufer-Steinnocher, P. (2019). The dynamic impact of monetary policy on regional housing prices in the United States. Real Estate Economics, 1–30 (in Press). https://doi.org/10.1111/1540-6229.12274
Gallin, J. (2006). The long-run relationship between house prices and income: Evidence from local housing markets. Real Estate Economics, 34(3), 417–438. https://doi.org/10.1111/j.1540-6229.2006.00172.x
Gao, A., Lin, Z., & Na, C. F. (2009). Housing market dynamics: Evidence of mean reversion and downward rigidity. Journal of Housing Economics, 18(3), 256–266. https://doi.org/10.1016/j.jhe.2009.07.003
Genesove, D. (2003). The nominal rigidity of apartment rents. Review of Economics and Statistics, 85(4), 844–853. https://doi.org/10.1162/003465303772815763
Gilles, C., & LeRoy, S. F. (1992). Bubbles and charges. International Economic Review, 33(2), 323–339. https://doi.org/10.2307/2526897
Gimeno, R., & Martínez-Carrascal, C. (2010). The relationship between house prices and house purchase loans: The Spanish case. Journal of Banking & Finance, 34(8), 1849–1855. https://doi.org/10.1016/j.jbankfin.2009.12.011
Gouteron, S., & Szpiro, D. (2005). Excess monetary liquidity and asset prices (Banque de France Working paper No. NER-E 131). https://doi.org/10.2139/ssrn.1703438
Guo, S., & Li, C. (2011). Excess liquidity, housing price booms and policy challenges in China. China & World Economy, 19(6), 76–91. https://doi.org/10.1111/j.1749-124X.2011.01267.x
Hanck, C., & Prüser, J. (2020). House prices and interest rates: Bayesian evidence from Germany. Applied Economics, 52(28), 3073–3089. https://doi.org/10.1080/00036846.2019.1705242
Hartzell, D., Hekman, J. S., & Miles, M. E. (1987). Real estate returns and inflation. Real Estate Economics, 15(1), 617–637. https://doi.org/10.1111/1540-6229.00407
Himmelberg, C., Mayer, C., & Sinai, T. (2005). Assessing high house prices: Bubbles, fundamentals and misperceptions. Journal of Economic Perspectives, 19(4), 67–92. https://doi.org/10.1257/089533005775196769
Huang, J., & Shen, G. Q. (2017). Residential housing bubbles in Hong Kong: Identification and explanation based on GSADF test and dynamic probit model. Journal of Property Research, 34(2), 108–128. https://doi.org/10.1080/09599916.2017.1321574
Ibbotson, R. G., & Siegel, L. B. (1984). Real estate returns: A comparison with other investments. Real Estate Economics, 12(3), 219–242. https://doi.org/10.1111/1540-6229.00320
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(2–3), 231–254. https://doi.org/10.1016/0165-1889(88)90041-3
Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica, 59(6), 1551–1580. https://doi.org/10.2307/2938278
Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration – with applications to the demand for money. Oxford Bulletin Economics and Statistics, 52(2), 169–210. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x
Jordà, Ò., Schularick, M., & Taylor, A. M. (2015). Betting the house. Journal of International Economics, 96(S1), S2–S18. https://doi.org/10.1016/j.jinteco.2014.12.011
Kallberg, J. G., Liu, C. H., & Pasquariello, P. (2014). On the price comovement of U.S. residential real estate markets. Real Estate Economics, 42(1), 71–108. https://doi.org/10.1111/1540-6229.12022
Kim, B. H., & Min, H. G. (2011). Household lending, interest rates and housing price bubbles in Korea: Regime switching model and Kalman filter approach. Economic Modelling, 28(3), 1415–1423. https://doi.org/10.1016/j.econmod.2011.02.001
Kishor, N. K., & Marfatia, H. A. (2017). The dynamic relationship between housing prices and the macroeconomy: Evidence from OECD countries. Journal of Real Estate Finance and Economics, 54, 237–268. https://doi.org/10.1007/s11146-015-9546-8
Kuhle, J. (1987). Portfolio diversification and returns benefits – Common stock vs. real estate investment trusts. Journal of Real Estate Research, 2(2), 1–9. https://www.jstor.org/stable/44095201
Li, Y. M. (2015). The asymmetric house price dynamics: Evidence from the California market. Regional Science and Urban Economics, 52, 1–12. https://doi.org/10.1016/j.regsciurbeco.2015.02.002
Lin, Y.-J., Chang, C.-O., & Chen, C.-L. (2014). Why homebuyers have a high housing affordability problem: Quantile regression analysis. Habitat International, 43, 41–47. https://doi.org/10.1016/j.habitatint.2014.01.013
Malpezzi, S. (1999). A simple error correction model of house prices. Journal of Housing Economics, 8(1), 27–62. https://doi.org/10.1006/jhec.1999.0240
McDonald, J. F., & Stokes, H. H. (2013). Monetary policy and the housing bubble. Journal of Real Estate Finance and Economics, 46(3), 437–451. https://doi.org/10.1007/s11146-011-9329-9
Mikhed, V., & Zemcík, P. (2009). Do house prices reflect fundamentals? Aggregate and panel data evidence. Journal of Housing Economics, 18(2), 140–149. https://doi.org/10.1016/j.jhe.2009.03.001
Miles, D., & Pillonca, V. (2008). Financial innovation and European housing and mortgage markets. Oxford Review of Economic Policy, 24(1), 145–175. https://doi.org/10.1093/oxrep/grn005
Moons, C., & Hellinckx, K. (2019). Did monetary policy fuel the housing bubble? An application to Ireland. Journal of Policy Modeling, 41(2), 294–315. https://doi.org/10.1016/j.jpolmod.2019.03.006
Park, S. W., Bahng, D. W., & Park, Y. W. (2010). Price run-up in housing markets, access to bank lending and house prices in Korea. Journal of Real Estate Finance and Economics, 40(3), 332–367. https://doi.org/10.1007/s11146-008-9143-1
Paul, P. (2020). The time-varying effect of monetary policy on asset prices. Review of Economics and Statistics, 102(4), 690–704. https://doi.org/10.1162/rest_a_00840
Pavlidis, E., Yusupova, A., Paya, I., Peel, D., Martínez-García, E., Mack, A., & Grossman, V. (2016). Episodes of exuberance in housing markets: In search of the smoking gun. Journal of Real Estate Finance and Economics, 53, 419–449. https://doi.org/10.1007/s11146-015-9531-2
Phillips, P. C. B. (1995). Fully modified least squares and vector autoregression. Econometrica, 63(5), 1023–1078. https://doi.org/10.2307/2171721
Phillips, P. C. B., & Hansen, B. E. (1990). Statistical inference in instrumental variables regression with I(1) processes. Review of Economic Studies, 57(1), 99–125. https://doi.org/10.2307/2297545
Robstad, Ø. (2018). House prices, credit and the effect of monetary policy in Norway: Evidence from structural VAR models. Empirical Economics, 54, 461–483. https://doi.org/10.1007/s00181-016-1222-1
Rubens, J., Bond, M., & Webb, J. (1989). The inflation-hedging effectiveness of real estate. Journal of Real Estate Research, 4(2), 45–56. https://doi.org/10.1080/10835547.1989.12090578
Ryczkowski, M. (2019). Money, credit, house prices and quantitative easing – the wavelet perspective from 1970 to 2016. Journal of Business Economics and Management, 20(3), 546–572. https://doi.org/10.3846/jbem.2019.9859
Scherbina, A., & Schlusche, B. (2014). Asset price bubbles: A survey. Quantitative Finance, 14(4), 589– 604. https://doi.org/10.1080/14697688.2012.755266
Shiller, R. J. (2009). Unlearned lessons from the housing bubble. The Economists’ Voice, 6(7), 1–2. https://doi.org/10.2202/1553-3832.1616
Shimizu, C., Nishimura, K. G., & Watanab, T. (2010). Residential rents and price rigidity: Micro structure and macro consequences. Journal of The Japanese and International Economies, 24(2), 282–299. https://doi.org/10.1016/j.jjie.2009.12.006
Sommer, K., Sullivan, P., & Verbrugge, R. (2013). The equilibrium effect of fundamentals on house prices and rents. Journal of Monetary Economics, 60(7), 854–870. https://doi.org/10.1016/j.jmoneco.2013.04.017
Su, C., Yin, X., Tao, R., Lobonţ, O.-R., & Moldovan, N.-C. (2018). Are there significant linkages between two series of housing prices, money supply and short-term international capital? – Evidence from China. Digital Signal Processing, 83, 148–156. https://doi.org/10.1016/j.dsp.2018.08.017
Su, C.-W., Wang, X.-Q., Tao, R., & Chang, H.-L. (2019). Does money supply drive housing prices in China? International Review of Economics and Finance, 60, 85–94. https://doi.org/10.1016/j.iref.2018.12.013
Tsai, I.-C. (2015a). Monetary liquidity and the bubbles in the U.S. housing market. International Journal of Strategic Property Management, 19(1), 1–12. https://doi.org/10.3846/1648715X.2014.973465
Tsai, I.-C. (2015b). Monetary policy and bubbles in the national and regional UK housing markets. Urban Studies, 52(8), 1471–1488. https://doi.org/10.1177/0042098014534904
Tsai, I.-C. (2020). Price rigidity and vacancy rates: The framing effect on rental housing markets. The Journal of Real Estate Finance and Economics. https://doi.org/10.1007/s11146-020-09791-4
Valadkhani, A., Nguyen, J., & O’Brien, M. (2019). Asymmetric responses of house prices to changes in the mortgage interest rate: Evidence from the Australian capital cities. Applied Economics, 51(53), 5781–5792. https://doi.org/10.1080/00036846.2019.1619026
Wang, X.-Q., L.-N. Hao, Tao, R., & Su, C.-W. (2020). Does money supply growth drive housing boom in China? A wavelet-based analysis. Journal of Housing and the Built Environment, 35, 125–141. https://doi.org/10.1007/s10901-019-09668-w
Yin, X.-C., Tao, R., Chai, K.-C., & Su, C.-W. (2020). A revisit on linkage of hot money, money supply and housing prices in China. Journal of Housing and the Built Environment, 35, 617–632. https://doi.org/10.1007/s10901-019-09704-9
Zhang, C., Jia, S., & Yang, R. (2016). Housing affordability and housing vacancy in China: The role of income inequality. Journal of Housing Economics, 33, 4–14. https://doi.org/10.1016/j.jhe.2016.05.005
Zorn, P. M. (1988). An analysis of household mobility and tenure choice: An empirical study of Korea. Journal of Urban Economics, 24(2), 113–128. https://doi.org/10.1016/0094-1190(88)90034-4