Edward Glaeser, Wei Huang, Yueran Ma, and Andrei Shleifer
In: Journal of Economic Perspectives Vol. 31, No. 1, 93-116
Is the Chinese real estate boom a bubble? This question takes the center stage in the paper of Glaeser et al. They approach it by analyzing the determinants of demand and supply of housing in China. Further they use the great housing boom in the United States as a benchmark to put the Chinese boom into perspective and highlight its unique features. Finally they conclude, that a housing crash isn’t inevitable, but that the outcome depends largely on the decisions that will be made by the Chinese government.