Lending Behavior And Real Estate Bubble

Real estate bubble is the main manifestation of asset bubbles, once it collapses, the damage will be serious. Experiences in various countries indicate that lending behavior closely relates with real estate bubble, as the expanding or contracting of credit have great impacts on the price of real estate. With a rapid expanding of banking credit on real estate industry since 1998, as long as the housing price soaring, there are a theoretical controversy on real estate bubble in China. At the present, our real estate industry depends deeply on credit funds,the bank credit supports our real estate to its full flourish, while accumulating substantial risk correspondingly. Therefore, researching the relationship between bank credit behavior and real estate bubble is of great meaning to understand the formation mechanism of bubble and to take measures to guard against and to dissolve the risk of real estate bubble.The whole paper is divided into five parts. The first part (introduction) points out the significance and background of this subject, and briefly introduces the structure of this paper.The second part gives definition of asset bubbles and real estate bubble, and reviews the existing literatures. Firstly, after integrated survey of definitions at home and abroad, the author definite asset bubbles as: It's a phenomenon of price movement essentially, where asset price deviates continuously from foundation price because of people's speculative behavior causing by homogeneous expectation. Based on definition above, the author gives the definition of real estate bubble: It's a price phenomenon essentially, where real estate price deviates continuously from foundation price because of people's speculative behavior causing by homogeneous expectation. Secondly, the author reviews and summarizes existing foreign literatures concerning on bubble economic and sums up the research progress at home. And then, the author point out the theoretical innovation of this paper, i.e. try to use behavior finance theories to study the relationship...