I-Chun Tsai's research while affiliated with National Tsing Hua University and other places

Publications (88)

Article
Full-text available
This paper aims to discuss the influence of migration policy risk on market segmentation of housing and rental markets in the Euro Area. Policy risk is represented by the Migration Policy Uncertainty Index (MPUI) and Migration Fear Index (MFI) of Germany and the United Kingdom; in this study, whether these indexes influence the interaction between...
Article
In 2020, governments worldwide enforced lockdowns to contain the spread of COVID-19, severely impeding aspects of daily life such as work, school, and tourism. Consequently, numerous economic activities were affected. Before the COVID-19 outbreak, city-center housing markets in areas surrounding popular tourist attractions performed better than did...
Article
Housing price combines the building value and land value of real estate, in which the building value can be measured using its reconstruction cost minus its depreciation. For land value, the future redevelopment value of the land should be considered in addition its present use value. However, the uncertainty of land redevelopment is often high bec...
Article
This study explores the impact of the Taichung Thermal Power Plant in Central Taiwan on the housing prices of surrounding houses and employs empirical data to capitalize the hidden costs of air pollution. This power plant is the fourth largest in the world and operates mainly through coal burning, in addition, the power plant is still under expansi...
Article
Full-text available
Frequently migration between Hong Kong (HK) and China can cause the real estate price standards of HK’s and China’s first-tier cities to resemble one another. This study adopts the real estate prices of HK and four major cities in China, namely Beijing, Shanghai, Shenzhen, and Guangzhou, from January 2001 to April 2019. The results reveal that for...
Article
This paper takes the London housing market as an example to discuss whether housing markets with more significant overheating effects have a greater influence on other housing markets. The spillover effect of London’s housing market has been the subject of much literature, but the empirical results of the relevant literature are inconsistent. This...
Article
This paper explores changes in social behavior since the start of the COVID-19 pandemic, which are characterized by reduction in relocation, mobility, and community engagement, and how the correlations between regional housing markets are affected by these changes. Because changes in mobility and engagement are the most apparent in large cities, th...
Article
The value of a property comprises the value of both the building and the land. Numerous studies have reported a nonlinear relationship between house age and housing prices, which may result from mispricing the value of the land. The paper establishes a theoretical model to evaluate the optimal time for land redevelopment and the land value after re...
Article
Full-text available
This study employed data on US mortgage rates from 2009 to 2017 to study the effect of gender on the mortgage rate. Preliminary examination revealed that women faced a comparatively high mortgage rate. This condition was most severe during 2012–2014, when female borrowers must pay an average of 0.1 percentage points higher rates than male peers. Ho...
Article
This study uses data from six Eurozone countries and the United Kingdom between 1980Q1 and 2018Q4 to examine whether these countries had housing bubbles during the observed period. Whereas typical studies make strictly limited assumptions regarding interest rates, we make an unconventional argument for the necessity of testing the integration relat...
Article
In real estate transactions, buyers of presale houses incur greater risks than do buyers of pre-existing houses; consequently, presale housing prices should be discounted. However, in many areas, short-term presale housing markets often overheat. To illustrate this phenomenon, this paper adopts two theoretical models to analyze long-term equilibriu...
Article
Full-text available
This study employs housing data from the nine main regions of England and from overall England to compare the volatility risks of housing prices for the first-time buyer (FTB) and former owner-occupier (FOO) markets. This study collects data from February 2012 to March 2020 to assess the volatility characteristics of housing prices in these two mar...
Article
Full-text available
This paper proposes a new explanation for housing rent price rigidity. When high inflation or low inflation occurs, the bargaining process for new rent price represents negotiations representing increasing or diminishing utility for landlords. Based on framing effect theory, this study hypothesized that utility increasing-bargaining causes landlord...
Article
Full-text available
Studies have typically adopted the price-rent ratio to determine whether housing exuberance exists and the periods of imbalance between house prices and rental costs. Using the price-rent ratio to conduct tests without considering the effects of mortgage interest rates on user costs may overestimate episodes of exuberance. This study uses data of t...
Article
The present study used a new perspective that integrates the commonly observed market characteristics to analyse why the ripple effect is formed. This study proposed a model to infer that in a regional housing market with a relatively low trading probability, low trading volume, high price volatility, and low price efficiency coexist and cause the...
Article
This study uses theoretical models and empirical research to explain that interest rates affect the structure of housing price formation and correction rather than affect the price alone. In particular, when interest rates are substantially reduced, the correction of housing prices toward fundamentals is absent; in other words, a housing bubble is...
Article
Full-text available
In this paper, we infer that when no excess monetary liquidity exists, people tend to invest available capital in assets associated with a high return or low risk. However, when excess monetary liquidity occurs, capital may successively boost asset markets, and the stock market wealth is thus likely to spill into housing markets, resulting in bubbl...
Article
In this study, a theoretical framework was constructed to verify whether the inflation level determines the presence of money illusion. The unexpected occurrence of low inflation is typically taken as an indication that the economy has entered or is entering a recession, and people expect the Federal Reserve to rapidly intervene to recover the econ...
Article
Full-text available
This study investigates the housing market in Taiwan, an emerging market with relatively severe housing price inflation. Using data from the first quarter of 1991 to the second quarter of 2017 for four cities in Taiwan, this study compares the risk transmission and sources of their housing prices. The results reveal that Taipei−Taiwan’s main financ...
Article
Full-text available
A change in housing prices has a profound impact on households' housing equity and future moving decisions. While most previous studies focus on discussing the mobility lock-in effect due to housing price depreciation, revealing that there is a positive relationship between housing prices and migration, this study reexamines their relationship by u...
Article
Full-text available
The goal of this paper is to observe the interregional correlations in the housing market at three price tiers (low, middle, and high) and examine differences in ripple effects at each housing price tier and the factors that influence these effects in each tier. Ripple effects in housing prices of 10 major metropolitan areas in the USA between Janu...
Article
Full-text available
This study investigated whether house price deviation (irrational house prices) between European countries is mutually contagious or whether irrational behaviour in relation to house prices is mainly caused by domestic factors. This study investigated eight eurozone countries and the United Kingdom’s (U.K.) house price deviation was estimated using...
Article
This study analyzes the relationship between the second-hand house price index of Shanghai and Shanghai stock market indices distinguishing between the A-share market, in which Chinese investors predominate, and the B-share market, in which foreign investors predominate. Monthly data for the period April 2003 to June 2018 are analyzed using VAR and...
Article
In addition to evaluating the long‐term and short‐term relationships between housing markets on the regional and nationwide scales, this study also explores risk diffusion associated with market integration. Data from January 1995 to July 2017 in nine regions in England and in the overall England housing market are adopted. Through simultaneous est...
Article
This paper uses the house price indices of 20 metropolitan statistical areas (MSAs) across the United States from January 1991 to April 2018 to analyze the dynamic connectedness of the housing markets in these MSAs. By estimating the connectedness of the entire sample before, during, and after the subprime mortgage crisis, this paper compares the c...
Article
Over the last few decades, exuberance (bubble) and spillovers (ripple effects) have both been observed in the overheated housing market. However, surprisingly few attempts have so far been made to integrate these two concepts to further explore China's housing market frenzies. According to growth poles, the causality between exuberance and spillove...
Article
This study analyzes the dynamic price–volume causality in the American housing market using the average price and transaction volume of existing houses in the United States from January 1999 to December 2015. A rolling window sample is used for estimation in the bootstrap Granger causality test. The results reveal that the transaction volume tends...
Article
Since 2006, China has issued a series of policies to regulate foreign investments (FI) in the attempt to control housing prices. In the present study, the association between foreign direct investments (FDI) and China’s housing price bubble (HPB) was examined to elucidate the rationality of foreign investment controls. Structural changes in the inf...
Article
China's stock market crash on August 24, 2015 affected global stock markets, indicating a possible black swan event. This study looked at trading days when sudden rises and drops occurred in 2015 in its stock markets to examine the intraday fluctuation behaviors of stock prices in order to answer several questions: (a) How did the market resume sta...
Article
High regional house prices relative to income may result in residents moving to other regions with lower housing burden; this generates relationships among regional housing markets. From this perspective, this study employed Markov-switching models to examine housing affordability in 10 regional housing markets in the UK. The results show that leve...
Article
Full-text available
According to search theory, transaction volume possesses the function of price discovery and reflects information more rapidly than price does. However, the findings of previous empirical studies differ considerably. In this study, a theoretical model is first established to analyze the potential information lag of transaction volume during pessimi...
Article
This paper constructs a generalized theoretical model to examine potentially high price variation and insufficient liquidity as the requirements for an enormous crash in a short period. In a market with insufficient liquidity, rapid changes in information induce selling pressure, therefore, this paper defines the prerequisite of a flash crash (larg...
Article
Full-text available
In this study, the ripple effect in four regional housing markets in the USA (Northeast, Midwest, South, and West) was examined by analyzing housing prices, which is a method that has been primarily used in other studies, and the transfer of information in the transaction volume data of regional markets. First, the ripple index between regional hou...
Article
Full-text available
This study explored risk transfer among the housing markets of five major cities in China, comprising three first-tier cities (i.e., Beijing, Shanghai, and Shenzhen) and two second-tier cities (i.e., Tianjin and Chongqing). House price index data from January 2001 to June 2017 and a vector autoregressive-multivariate generalized autoregressive cond...
Article
This study examined the housing prices in major metropolitan areas in Taiwan and identified the reasons for the significant differences among them. A quantitative analysis of the spread effect in the housing prices revealed that the improvement in transportation infrastructure in the most recent decade intensified the spread effect. The findings ob...
Article
This study investigates whether single currency use increased house price convergence among various countries. First, the panel unit root test results indicate that the house prices in euro zone countries were more correlated than the house prices in non-euro zone countries. Second, the house prices in various European countries converged towards t...
Article
This study uses regional data from the UK housing market to analyse market depth. Market depth is the trading volume required to move market prices by one unit. Two methods are applied in this study to analyse the depth of the housing market. First, the responsiveness of housing prices to changes in volume is measured. Second, the relationships bet...
Article
This study examined whether a person’s gender influences his or her real estate trading sentiments. Previous studies have suggested that risk aversion, loss aversion, and expectations of probabilities can affect trading sentiments. Thus, this study inferred that a person’s gender can inform these three factors and thus lead to differences in real e...
Article
Full-text available
This study investigated the performance of the housing market in China, determining that from a long-term perspective, an equilibrium relationship exists between housing prices and output. However, the housing market may not be efficient in the short run. Based on the correlation between housing returns and the economic growth rate, 3 distinct stat...
Article
Full-text available
Based on Diebold and Yilmaz’s (International Journal of Forecasting 28:57–66, 2012) methodology, we estimate three return spillover indices in a four-asset system comprising equity REIT (EREIT), mortgage REIT (MREIT), stock, and bond for the sample period from January 1972 to September 2014. We find that the total return spillover risks account for...
Article
This study explores the effect of economic policy uncertainty (EPU) in four countries or regions (China, Japan, Europe, and the United States) on the contagion risk of investments in the global stock market. The stock returns of 22 stock markets worldwide are analyzed to determine which region’s EPU exhibits the greatest effect on regional systemat...
Article
The dependency rate is an indicator of demographic structure that usually is used to measure the pressure on productive population. A high dependency ratio can cause serious problems for a country if a large proportion of a government's expenditure is on health, social security and education, which are most used by the youngest and the oldest in a...
Article
This study applied linear and nonlinear causality tests and estimation models to investigate the efficiency of housing prices and volumes in the United States and its four major regions. The results of this study confirm that housing volumes can function as a price-discovery indicator. According to the nonlinear volatility of housing prices, this s...
Article
This paper investigated the relationship between the U.S. stock and housing markets as well as their influence on the wealth effect of consumption and found that the stock market sentiment index can explain changes in the wealth effect. The empirical results indicate that these two markets exert a wealth effect on consumption. The estimation result...
Article
This study explores the optimistic and pessimistic investor sentiments of three major institutional investors (foreign investors, trust investors, and dealers) in the Taiwan stock market and investigates the interactions and effects of these types of sentiment. Related indices are first calculated to examine whether investor sentiments are contagio...
Article
The present study explains the reasons for the imbalanced development of the Chinese housing market. Using the quantile autoregression unit-root test, we examine housing prices in China's five major cities. The results show that the rising and falling of housing prices in these cities exhibits asymmetric reversion. When housing prices fall, market...
Article
Full-text available
The existing researches show that the relationships across regional housing market in the USA are asymmetric, and the ripple effect may exist among regional housing markets. To study the ripple effect among regional housing market, this research uses vector autoregression model, Granger causality test and the forecast error variance decomposition t...
Article
This study applies data from the housing market and stock market in the United States to evaluate the dynamic information transfer between the two markets. The results reveal that housing and stock prices do not have a long-term integral relationship, but exhibit a substantial short-term causal relationship. Therefore, the paper further evaluates t...
Article
Full-text available
Extant studies indicate that the excessive easing of monetary supplies can result in surplus liquidity, which can consequently facilitate the formation of asset bubbles. This study references data on house prices in the U.S. from January 1991 to August 2012 to explore the correlations between monetary liquidity and house price bubbles in the U.S. h...
Article
This study estimates the time-varying REIT betas with a structural time series model using monthly REIT return data for the periods from 1972 to 2013. Based on the FTSE-NAREIT return indices for the equity REIT (EREIT) and mortgage REIT (MREIT), we found corroborative evidence of the temporal declines in the betas of the two REITs up to 1999. The t...
Article
The paper uses open interest as the proxy variable of market depth to estimate its effects on volatility, return, volume and deviations of contract prices from the fundamental level. It adopts open interest from three types of investors, namely, dealers, trusts and foreign investors, to analyse the information content of trading demand from these i...
Article
Tsai I-C. Spillover effect between the regional and the national housing markets in the UK, Regional Studies. This study uses regional and national data from the UK housing market to analyse the spillovers between these markets and to test whether a ripple effect exists in UK housing prices. Cross-market return spillovers are determined by performi...
Article
In this study, we use stock index data of various industries in Taiwan from 2001 to 2010 to estimate the exchange rate exposures of these industries under various data frequencies (daily, monthly, and quarterly). We add the effect of hot money on exchange rate exposures and find that significant exchange rate exposures exist for most industries. Af...
Article
This study adopts the data of house prices and trading volume in the overall UK housing market and in the housing markets in the 10 major regions in the UK to estimate the ripple effect in the trading activities in the housing markets. First, this study details why the ripple effect occurs in the housing market price and volume using static and cob...
Article
This study investigates the spillover effect in five leading stock markets (i.e., the United States, the United Kingdom, Germany, Japan, and France). It estimates the spillover indices of these countries and finds that information transmission between these stock markets increases considerably after 1998. Germany and the United States are the main...
Article
Numerous studies have explained the significant correlation between monetary policies and asset pricing bubbles. This study uses data on the overall UK housing market and the five UK regions with the highest house prices to evaluate the correlation between monetary policies and pricing bubbles in the UK housing markets. This study uses a theoretica...
Article
Classic theory suggests that the real estate market cycle reflects the consequences of an inherent self-correcting pattern. Previous studies found evidence showing the existence of two stochastic processes, serial correlation and mean reversion, in housing price dynamics. The present study utilized data from the Taiwan housing market to observe whe...
Article
This paper analyzes the volatile behavior of index returns in the following Asian real estate investment trust (REIT) markets: South Korea, Singapore, Japan, Taiwan, Hong Kong, Malaysia and Thailand. It also analyzes the conditional volatilities of REIT returns and determines whether any volatility clustering, size, liquidity, or contagion effects...
Article
Purpose The goal of this research is to investigate the time‐varying relationship between REITs and the stock markets in four Asian markets such as Taiwan, Hong Kong, Singapore and Japan. Design/methodology/approach The Multivariate GARCH‐vech model is used to capture the time‐varying correlation. The extreme value theory (EVT) is then employed to...
Article
Previous studies have discovered the defensive characteristics of housing prices, which is also known as downward price rigidity. This paper discusses whether this feature would result in an asymmetric relationship between housing prices and monetary policy. This paper first uses the loss aversion behavior of traders to assess the viability of hous...
Article
Housing prices are subject to the impacts of supply as well as demand. While supply is affected by construction costs, demand is determined by the renting/buying considerations of the public. As a result, the construction cost index (CCI) on the supply side and the rental price index (RPI) on the demand side should be closely related to the house p...
Article
This paper uses the data of six Asian countries to estimate the relationship between stock price index and exchange rate. According to the portfolio balance effect, these two variables should be negatively related. However, since the evidence from traditional ordinary least squares estimation is not favorable, the quantile regression model is adopt...
Article
Recent studies have documented an asymmetry in the market-beta of equity Real Estate Investment Trusts (REITs) based on high and low Gross Domestic Product (GDP) growth states, as well as in bull and bear stock markets. The asymmetry has been deemed a puzzle (Chatrath et al., 2000; Chiang et al., 2004); some previous studies explained it by describ...
Article
Purpose The purpose of this paper is to analyze whether a convergent behavior exists in the price indexes of the seven Asian Real Estate Investment Trust (REIT) markets. Design/methodology/approach The authors investigate the convergent behavior in Asian REIT indexes against Japan and the USA by conducting the unit‐root testing procedure. Finding...
Article
This research employs a filtered and unfiltered value at risk (VaR) model to evaluate the downside risk in housing markets in the United States and the United Kingdom. Empirical results show that the filtered general Pareto distribution (GPD) can correctly capture the downside risks in both housing markets. As the actual return distribution in the...
Article
The National Association of Real Estate Investment Trust (NAREIT) has suggested that Net Income (NI) might not be the best measure of operating performance for income-producing real estate, since depreciation measurement based on historical cost is inappropriate for income-producing real estate. Thus, the NAREIT purposes Funds From Operation (FFO)...
Article
Previous studies commonly use a linear framework to investigate the long-run equilibrium relationship between the housing and stock markets. The linear approaches may not be appropriate if adjustments from disequilibrium are asymmetric in both markets. Nonlinear adjustments are likely to be observed since the two markets respond rather differently...
Article
This study tests the impact of diversification strategies on the cash flows, expenses, risks and returns of REITs in Asia. Hirschman-Herfindahl indices (HHI) are computed based on 2281 properties owned by 63 sample Asian REITs for the periods from 2002 to 2007 to measure the levels of diversification by property type and geographical region. In our...
Article
This paper uses the stock performance of construction companies in Taiwan to test whether there are bubbles. The panel data tests are employed to find whether the prices of construction company stocks reflect fundamental indicators and to detect the bubble-like behavior of the stock prices. A bubble indicator is constructed and its relationship wit...
Article
Full-text available
This study tests the impact of diversification strategies on the cash flows, expenses, risks and returns of REITs in Asia. Hirschman-Herfindahl indices (HHI) are computed based on 2281 properties owned by 63 sample Asian REITs for the periods from 2002 to 2007 to measure the levels of diversification by property type and geographical region. In our...
Article
The purpose of this research is to examine the information content of order imbalances, an important variable in representing trading activity. The Taiwan Stock Exchange launched limited after-hours trading, in which investors can only trade at the closing price of the normal trading hours. Using the data set in Taiwan after-hours market, this arti...
Article
Although the equilibrium relationship between household income and house price is well documented in previous theoretical studies, the empirical results are usually unfavorable. This article examines whether a long-term relationship between house price and income exists through a panel integration and cointegration methodology in analyzing data fro...
Article
This article analyses investment risk in the housing market by examining volatility properties of house prices for the UK. We use both ARCH and GARCH models to estimate price conditional heteroscedasticity and find evidence of a time-varying property in the volatilities of the house price series. We then use the SWARCH model and find there are thre...
Article
Full-text available
In 2007, a number of stock funds and Real Estate Investment Trusts (REITs) tended to invest in Asian markets due to their outstanding performance during the period prior to 2006. However, can this move increase the covariate between the stock and REIT markets in Asian markets as well as further increase the risk in REIT markets? To address this, th...
Article
Purpose The purpose of this study is to test whether real estate investment trusts (REITs) are able to reap positive economies of scale with an enlarged asset base, which are translated into lower operating expenses, higher revenue, and better accessibility to capital at competitive costs. The paper aims to test economies of scale effects on expens...
Article
Purpose The purpose of this paper is to show an indication that the asymmetric volatility between house price movement may account for the defensiveness of the housing market. Design/methodology/approach First the UK nation‐wide house price data from the last quarter (Q4) of 1955 to the last quarter of 2005 are used and then the most suitable mean...
Article
This paper investigates the equilibrium relationship between house price and household income and what causes disruptions of the equilibrium between them. By using data from Taiwan, the traditional cointegration test does not find evidence for a long-run equilibrium between them, but the stochastic break (STOPBREAK) test, which allows temporary sho...
Article
We develop a dynamic model of order submission strategies in an order-driven market, where traders differ in their share valuations. Our model shows that several factors influence the uninformed trader¡¦s choice of order to submit: the market price, the expected asset value, the probability of order execution, and the tick. In addition to these fac...
Article
In down-payment constrained housing consumption models, increases in house prices could trigger household mobility decisions in housing markets. This study empirically tests house price dynamics associated with the mobility of households in the public resale and private housing markets in Singapore. The results show that stochastic permanent breaks...
Article
Although several articles have documented that there are heteroskedastic autocorrelations in the volatility of real estate prices, few of these papers depict one of the most commonly known advantages of the housing market, namely, its ability to be defensive from the viewpoint of vola- tile behavior. Therefore, this research seeks to examine "defen...
Article
We develop a dynamic model of limit order in an order-driven market, where traders differ in their share valuations. Taking into consideration traders learning process and allowing the conditional probability of limit order execution to vary, we can analyze the dynamics of order execution. Our results have interesting empirical implications that ar...
Article
This paper analyzes volatility states of the UK house prices. We use both ARCH and GARCH models to estimate price conditional heteroscedasticity and find the evidence of time-varying property in price series. We continue to use the SWARCH model and found there are at least two volatility states in the price series. Our estimations suggest the UK ho...
Article
What drive the temporal changes in EREIT betas? Were the drops in the EREIT betas caused by the reduction in "bad" betas? Have the "good" betas increased over the 1990s? Are REITs with declining betas becoming healthier? This paper attempts to provide empirical verification to the above questions. The earlier empirical tests suffer possible paramet...
Article
Although previous housing studies have discussed volatility and structural change in the Taiwan housing market, economic models built by these studies are handicapped in out-of sample forecasting when structural change occurs. Therefore, our paper aims to improve the error-correction model, which is commonly used in economic forecasting recently, b...

Citations

... The origin of the GFC was the extremely limited potential of financial sector organizations to absorb losses relying on equity because they were excessively leveraged, and especially focused on banks with significant subprime mortgages such as Lehman Brothers (Tsai and Tsai 2017). Once the valuation of banks' assets dropped, they became insolvent and asked for government bailouts, thus taking advantage of the unwillingness of governments to allow banks to fail (Davies 2015). ...
... There were nearly three million cases with 207,978 fatalities. Thus, several countries implemented lockdown policies (Cantarutti & Márquez Reiter, 2022) to slowing down the spread of the virus and to reduce the number of sufferers (Agius et al., 2022;Chela-Alvarez et al., 2022;Tsai et al., 2022). With a lockdown, the country closes its borders and suppresses transportation movements so that it simultaneously suppresses the movement of the virus (Sakawa & Watanabel, 2022;Yan et al., 2022). ...
... This paper further analyzes the heterogeneity of the effect of public environmental concern on air pollution in terms of both heating regions and the degree of economic development. Since China's heating areas are generally heated by thermal power plants, which significantly enhance local air pollution (Tsai, 2022). Therefore, it is necessary to consider the differences in heating areas and non-heating areas when analyzing the interaction between public environmental concern and air pollution. ...
... This foresight will lead to more consumption today and an implicit price increase tomorrow (Shiller R. J., 2005). (Rahadi, 2012), (Rahadi, 2013), (Rahadi, 2015), , (Ravikumar, 2021), (Zhang, 2015), (Wilhelmsson, 2002), (Cunha A. M., 2021), (Ansah, 2017), (Pinter, 2020), (Singh, 2020), (Berawi, 2020), (Zondag, 2005), (Rymarzak, 2012), (Wang, 2022), (Cajias, 2004), , (Chen, 2022), (Rahadi, 2016), (Jim, 2009) (Zhang, 2015), (Rahadi, 2013), (Chen, 2022) 3 ...
... Housing purchase choice is not a simple investment or consumption decision, but a complex system event (Clark and Dieleman, 1996). Since the beginning of the research on housing purchase choice in the 1980s, the factors influencing housing tenure choice can be basically summarized as microeconomic factors, macroeconomic environment, socio-demographic characteristics, psychological factors, cultural factors, etc. From an economics perspective, microeconomic factors can be subdivided into uncertainty in residents' income, household savings, credit status, and net household liquidable wealth (Lin and Lai, 2018), and changes in the macroeconomic environment including rising consumer prices, rising mortgage rates, subsidy regimes, and rent controls (Peng et al., 2020;Lin and Tsai, 2021). Enstrom-Ost et al. (2017) uses a two-stage instrument variable (IV) logit and probit model to study tenure choices in the Swedish housing market, which shows that financial constraints are inversely related to homeownership. ...
... Several studies have also shown wealth impact on Chinese housing and stock markets. In this light, the evidence indicates that monetary politics or 'hot money' can simultaneously affect the prices of both types of assets, stocks and property (Chiang & Tsai, 2020). ...
... For example, André et al. (2019) provided evidence of asymmetric house prices from the US states and metropolitan areas. Chu and Tsai (2020) also proposed that the house price volatilities in Taiwan are asymmetric. Compared with the direct comparison of the price-rent ratio, exploring the equilibrium of house prices and rental costs in housing tenure choice will have more economic implications. ...
... However, many previous studies well documented that rent has rigidity in the short term; for example, Shimizu et al. (2010) found evidence showing rent rigidity in Japan; Genesove (2003) reported the phenomenon regarding rent rigidity in the United States, and Hoffmann and Kurz-Kim (2006) also showed the similar phenomenon in Germany. Housing rent price rigidity might be caused by rent regulation (Rapaport, 1992) or the framing effect of rental housing markets (Tsai, 2020). ...
... The phenomenon of inflation will occur whenever the real value of money decreases or, in other words, the same amount of money is able to buy lessor goods and services in the same geographical area. A common belief and theory about equity investment are that equities are generally covered, i.e., hedge against inflation because it is believed that these equities own the real assets of the business, and hence inflation cannot affect these real assets (Labadie, 1989;Tsai, 2020). Making blind investments merely on the belief of this argument in itself is a very risky decision because a negative relationship was found by most of our research who analyzed this relationship. ...
... Further research finds that housing value is closely related to fundamental economic variables such as labour (Han et al., 2018;Li & Zhong, 2020). Peng et al. empirically study the positive correlation between housing prices and population migration and find that the impact in the short-term is not as significant as in the long-term (Peng & Tsai, 2019). The housing market seems to form the primary mechanism that slows down the workers' mobility (H€ am€ al€ ainen & B€ ockerman, 2004). ...