Measurement of Real Estate Bubble in China: An Overview of Direct Test Models Since 2003

A decade-long recession happened in Japan caused by 1990s´ real estate bubble, the global financial crisis triggered by the recent U.S. subprime mortgage bubble, even the economic crisis later make the public understand that the real estate bubble hurts the overall economy comprehensively and decisively, a serious real estate bubble in China in recent years adds a new footnote on the overall hurting to its national economy. The effective control on the real estate bubble depends on the scientific measurement of the bubble existence and its expansion. This paper describes the direct test models of the real estate bubble measurement in china, discusses its basic mechanism and comes to several conclusions.