An Empirical Study on the Rational and Irrational Herd in Chinese House Market

摘要

This paper proposes measures of rational and irrational herd in house market. Through the test on Chinese housing market, the dynamic characteristics of herd in Chinese housing market were revealed of. This paper used the modified LSV measure to examines herding behavior (investors trading in the same direction as their peers) in the Chinese house market during 1991 to 2003, where we find a higher degree of herding in Chinese house markets.