Description
Instructor(s)/Supervisor(s)/Coordinator(s): Chi Yung NGHousing has its unique characteristics in terms of heterogeneity, durability, spatial fixity, and high purchase price. This suggests that conventional economic concepts need to be readdressed in order to analyze housing. Besides, many households use mortgage loan to finance home purchase. A substantial collapse in house price might lead to negative equity for leveraged households and reduce their consumption and investment thereafter. This course studies both the microeconomic and macroeconomic issues of housing. Topics include housing demand and supply analysis, equilibrium models of housing market, rationales and effects of public policies on housing, causes and consequences of housing market dynamics and crisis. Applications to the subprime mortgage crisis and housing markets in Hong Kong and China will also be addressed.