Overconfidence and Real Estate Investment—Evidence from Chinese Real Estate Market

摘要

Based on the study of behavioral economics and the data of real estate market of 30 provinces and major cities for 2000-2007, we study the relationship between overconfidence of developers and real estate investment.Having considered and controlled other elements that may impact on real estate investment, we find there is a significantly positive relationship between overconfidence of developers and real estate total investment.That verifies that overconfidence of developers is a significant factor that has an effect on real estate investment.