{"title":"The empirical study on fractal characteristics of real estate market","authors":"Yao Feng-ge, Han Jing","doi":"10.1109/ICCIT.2010.5711159","DOIUrl":null,"url":null,"abstract":"The traditional real estate market theories are studied within the frame of neoclassical economics. As the core of neoclassical economics, Efficient Market Hypothesis (EMH) is the foundation of real estate market theory. But the traditional linear paradigm is facing a serious challenge from non-linear paradigm. Using R/S analysis method, which is the classical algorithm of Hurst index based on fractal characteristics, this paper did simulated experiment in the real estate market of china. The result shows that there exists a complex interaction among the factors, which could affect real estate market in China. It also reveals that Efficient Market Hypothesis (EMH) is not quite in line with the realities of the real estate market, and the psychology of individual and group investors has significant influence on the real estate market. The characters of fluctuations of real estate revenue in China are non-linear, non-equilibrium, fractal and chaotic. The fluctuation is in line with Fractional Brownian motion.","PeriodicalId":131337,"journal":{"name":"5th International Conference on Computer Sciences and Convergence Information Technology","volume":"5 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2010-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"5th International Conference on Computer Sciences and Convergence Information Technology","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1109/ICCIT.2010.5711159","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 1
Abstract
The traditional real estate market theories are studied within the frame of neoclassical economics. As the core of neoclassical economics, Efficient Market Hypothesis (EMH) is the foundation of real estate market theory. But the traditional linear paradigm is facing a serious challenge from non-linear paradigm. Using R/S analysis method, which is the classical algorithm of Hurst index based on fractal characteristics, this paper did simulated experiment in the real estate market of china. The result shows that there exists a complex interaction among the factors, which could affect real estate market in China. It also reveals that Efficient Market Hypothesis (EMH) is not quite in line with the realities of the real estate market, and the psychology of individual and group investors has significant influence on the real estate market. The characters of fluctuations of real estate revenue in China are non-linear, non-equilibrium, fractal and chaotic. The fluctuation is in line with Fractional Brownian motion.