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The range of uncertainty on the property market pricing: The case of the city of Shanghai

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  • Zhou, Jian
  • Shen, Yixuan
  • Pantelous, Athanasios A.
  • Zhang, Hui

Abstract

Property prices around the globe have seen very strong growth over the last two decades. Across various advanced countries, such a rapid and uncontrolled growth in house prices puts their economy in danger, and most importantly, their social integration and interconnectedness at great risk. In this paper, we develop a novel fuzzy linear regression framework using symmetric and asymmetric trapezoidal fuzzy numbers for determining the relationship of particular (non-) policy factors with the house prices. An interviewing questionnaire survey was conducted for collecting real data for the city of Shanghai to illustrate our theoretical treatment.

Suggested Citation

  • Zhou, Jian & Shen, Yixuan & Pantelous, Athanasios A. & Zhang, Hui, 2021. "The range of uncertainty on the property market pricing: The case of the city of Shanghai," Finance Research Letters, Elsevier, vol. 40(C).
    • Handle: RePEc:eee:finlet:v:40:y:2021:i:c:s1544612320309697
    DOI: 10.1016/j.frl.2020.101720
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    References listed on IDEAS

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    9. Pierpaolo D’Urso & Riccardo Massari, 2013. "Weighted Least Squares and Least Median Squares estimation for the fuzzy linear regression analysis," METRON, Springer;Sapienza Università di Roma, vol. 71(3), pages 279-306, November.
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    Cited by:

    1. Lee, Hung-Wei & Lin, Che-Chun & Tsai, I-Chun, 2023. "Another application of call options: Explaining the divergence between the housing market and the rental market," Finance Research Letters, Elsevier, vol. 53(C).

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    More about this item

    Keywords

    House prices; Bid-Ask spread; Fuzzy linear regression; Trapezoidal fuzzy numbers;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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