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The Differentiated Effect of Administrative Policy in China’s Housing Market — Based on the Heterogeneous Households Multi-Agent Model

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Abstract

Since 2010, Chinese government has introduced a series of administrative policies to limit speculation in the housing market to stabilize price fluctuations and keep the housing market in a healthy state of development. In order to investigate whether administrative policy can play its due role, this paper constructs a comprehensive bottom-up housing market heterogeneous households multiagent model (HHMAM) to undertake research on the differentiated effect of administrative policy in different cities. The empirical studies find that: 1) Administrative policy that increases interest rates will cause housing prices to continue to decline in the long term, but they will resume a rising trend after reaching the lowest point; 2) If the government cancels a property-purchasing limitation, housing prices will continue to rise; and 3) investors tend to invest in 1st-tier cities due to the high demand and greater likelihood of appreciation in these cities.

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Authors and Affiliations

  1. School of Economics and Management, Beijing University of Chemical Technology, Beijing, 100029, China

    Jiajia Liu

  2. School of Economics and Management, University of Chinese Academy of Sciences, Beijing, 100190, China

    Wei Dai, Xiuting Li, Zhi Dong & Jichang Dong

Authors
  1. Jiajia Liu
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  2. Wei Dai
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  3. Xiuting Li
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  4. Zhi Dong
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  5. Jichang Dong
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Corresponding author

Correspondence to Jichang Dong.

Additional information

This paper was supported by China Post-Doctoral Science Foundation under Grant No. 2017M620940.

This paper was recommended for publication by Editor WANG Shouyang.

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Liu, J., Dai, W., Li, X. et al. The Differentiated Effect of Administrative Policy in China’s Housing Market — Based on the Heterogeneous Households Multi-Agent Model. J Syst Sci Complex 33, 167–195 (2020). https://doi.org/10.1007/s11424-019-8228-7

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  • DOI: https://doi.org/10.1007/s11424-019-8228-7

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