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.
|Place of Publication||Hong Kong|
|Publisher||Centre for Public Policy Studies|
|Number of pages||24|
|Publication status||Published - Apr 2008|
|Name||Centre for Public Policy Studies Working Paper Series|
Bibliographical noteSupport from the RGC Grants Committee of Hong Kong (LU3008/00H) is gratefully acknowledged.
HO, L. S., & WONG, G. W. (2008). The housing ladder and Hong Kong housing market’s boom and bust cycle. (Centre for Public Policy Studies Working Paper Series; No. 190). Centre for Public Policy Studies. https://commons.ln.edu.hk/cgi/viewcontent.cgi?article=1088&context=cppswp