Investment Demand and Housing Prices in an Emerging Economy

This paper hypothesizes that the increase in money supply induced by rapid economic growth leads to strong investment demand in the Taiwanese housing market. A threshold model is used to confirm money supply as the key threshold variable. When the growth rate of money supply is below the model'...

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Published in:The Journal of real estate research 2012-07, Vol.34 (3), p.345-374
Main Authors: Chen, Ming-Chi, Chang, Chin-Oh, Yang, Chih-Yuan, Hsieh, Bor-Ming
Format: Article
Language:English
Subjects:
Capital
Consumption
Demand
Econometrics
Economic crisis
Economic growth
Emerging markets
Growth rate
Housing
Housing costs
Housing market
Housing prices
Inflation rates
Investments
Money supply
Prices
Real estate
Stock prices
Studies
Supply & demand
Value
Variables
Volatility
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cited_by cdi_FETCH-LOGICAL-c377t-a6848329c0b7ca1e046ac700fca20241bad689cadf7bf11725b4b695eeb7c3a33
cites cdi_FETCH-LOGICAL-c377t-a6848329c0b7ca1e046ac700fca20241bad689cadf7bf11725b4b695eeb7c3a33
container_end_page 374
container_issue 3
container_start_page 345
container_title The Journal of real estate research
container_volume 34
creator Chen, Ming-Chi
Chang, Chin-Oh
Yang, Chih-Yuan
Hsieh, Bor-Ming
description This paper hypothesizes that the increase in money supply induced by rapid economic growth leads to strong investment demand in the Taiwanese housing market. A threshold model is used to confirm money supply as the key threshold variable. When the growth rate of money supply is below the model's estimated threshold value, household number, income, and user cost of housing capital are significant variables. It appears that service demand and housing supply are essential in creating the linear movement of housing prices. However, when the growth rate of money supply exceeds the threshold value, stock prices and the inflation rate become important. These findings suggest that non-linear movement of housing prices is primarily driven by investment demand. [PUBLICATION ABSTRACT]
doi_str_mv 10.1080/10835547.2012.12091339
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source International Bibliography of the Social Sciences (IBSS); Taylor & Francis; JSTOR Archival Journals and Primary Sources Collection; ABI/INFORM Global
subjects Capital
Consumption
Demand
Econometrics
Economic crisis
Economic growth
Emerging markets
Growth rate
Housing
Housing costs
Housing market
Housing prices
Inflation rates
Investments
Money supply
Prices
Real estate
Stock prices
Studies
Supply & demand
Value
Variables
Volatility
title Investment Demand and Housing Prices in an Emerging Economy
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