The housing ladder and Hong Kong housing market’s boom and bust cycle

Research output: Working paperWorking paper series

Abstract

This paper presents evidence, based on the recent Hong Kong experience, for the existence of a “housing ladder effect.” An increase of housing equity at the bottom of the ladder tends to translate into a trading up activity that will both increase housing market turnover and buoy up the entire housing market. Based on a natural experiment through the introduction of a public housing privatization scheme, this papers presents evidence supporting this story using a logit model and a price-volume causality test.
Original languageEnglish
Place of PublicationHong Kong
PublisherCentre for Public Policy Studies
Number of pages24
Publication statusPublished - Apr 2008

Publication series

NameCentre for Public Policy Studies Working Paper Series
PublisherLingnan University
No.190

Bibliographical note

Support from the RGC Grants Committee of Hong Kong (LU3008/00H) is gratefully acknowledged.

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