Real Estate Macro-control Based On Behavioral Economics

Since the housing reform in1998, our country regulation of real estate hasexperienced five stages, while the national average house prices rose by more than150%. Reflected on macroeconomic control mechanism of real estate in China, theauthor thinks that the key problem lies in the strengthening of "absolute rationaleconomic man".Introduced the theory of behavioral economics, this article points out that themarket is "limited rationality", proves the existence of the noise behavior in ourcountry, explains the causes of noise behavior, and studies the macro impactmechanism of noise behavior effected on the real estate market. The paper putsforward that: with the premise of continuing to deepen " complete information " and "market-clearing ", China’s real estate regulatory mechanism should focus on the microreasons of noise behavior and macro mechanism of the diffusion of noise behavior,then monitors the phenomenon with value theory of behavioral economics. Ultimately,it should formulate a macro-control policy for micro-causes and proliferationmechanism from the psychological view of "economic man". Based on the cause ofthe noise and its impact mechanism of the market, this article has proposed7regulation proposals from the perspective of behavioral economics.The paper’s features and innovations are:(1) it introduced behavior economicsinto real estate regulation and adopted the concept of "limited rational economic man";(2) it explained the causes of behavior deviation of principal market participants andthe generation of noise behavior in Chinese real estate market from the views ofbehavior noise;(3) according to BAPM model of behavior economics,it estimated thenoise remuneration rate of50large cities in China and put forward the foundation ofmacroeconomic regulation and control of these cities.Deficiency of this article is the study on mechanism that behavior noise effectson the price is not sufficient enough. Further research on the utilization of BAPMpricing model in asset pricing of real estate in our country is necessary to furthercomprehension for relation between noise behavior and housing price. Only in thisway can we providing more practical and feasible Suggestions for our country realestate macroeconomic regulation and control.