Policy failure or success? Detecting market failure in China's housing market

We investigate the new and second-hand markets in 19 major cities, including 4 municipalities and 15 vice-provincial cities. Through our multiple-factor model, we explore the situation for each city. The results indicate these policies did improve the housing market's efficiency. It is therefore useful for the Chinese government to extend these policies to other areas to include not only big cities, but entire provinces which can improve its economic system efficiency and fairness even when its economic growth is slowing down.