Research On Real Estate Bubble Support By Bank Credit

Real estate bubble is the main manifestation of asset bubbles, once itcollages, the damage to society and economic will be serious. In thepast years, the real estate price ascended as the real estate creditincreased and brings about an intense discussion on whether a realestate bubble exists. However, how to define and judge the real estatebubble and what the theory it happened are still a controversy.This paper will get a conclusion that the excessive credit support isan important factor that brings about a real estate bubble by reviewingthe historic bubble incident and analyzing the influencing factors, thenanalyze function of the real estate credit support in the form of thebubble in terms of uncertainty of real estate and the gamble betweenbanks and real estate enterprise. After that, we build a local blatantmodel under the real estate support and make a practical analyze by it.Finally, this paper sets some estimating indexes for the real estatebubble. The research manifests that the real estate bubble expandedfrom 2003 fast by computing bubble indexes. The conclusion of thepractical research on the relationship between bubble indexes and realestate credit also confirms that the bubble indexes increase has apositive relationship with the real estate credit increase. At last, thispaper will give some suggestions according to the research in thepaper.