Housing market early warning system: The case of Korea

Seoung Hwan Suh, Kabsung Kim, Jae Sik Jeon

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

In the present paper, an early warning system (EWS) for the Korean housing market is constructed. The housing market pressure index is defined as the maximum value of the rates of changes in sales and rental price indexes of the nation and of a specific area. The critical value of HMPI is determined using its mean and standard deviation. With the signal approach model, we find 15 effective leading indicators. Furthermore, the explanatory power of the housing market crisis composite index determined using the leading indicators is satisfactory. Hence, the model developed in the current paper can be used as the EWS of the Korean housing market.

Original languageEnglish
Pages (from-to)539-547
Number of pages9
JournalEuropean Journal of Scientific Research
Volume56
Issue number4
Publication statusPublished - 2011 Jul

Fingerprint

early warning systems
Early Warning
early warning system
Alarm systems
housing market
Korea
Korean Peninsula
markets
Mean deviation
Rate of change
Standard deviation
sales
Critical value
Sales
Composite
Pressure
Market
Composite materials
Model
index

All Science Journal Classification (ASJC) codes

  • Computer Science(all)
  • Mathematics(all)
  • Materials Science(all)
  • Agricultural and Biological Sciences(all)
  • Engineering(all)
  • Earth and Planetary Sciences(all)

Cite this

Suh, Seoung Hwan ; Kim, Kabsung ; Jeon, Jae Sik. / Housing market early warning system : The case of Korea. In: European Journal of Scientific Research. 2011 ; Vol. 56, No. 4. pp. 539-547.
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Housing market early warning system : The case of Korea. / Suh, Seoung Hwan; Kim, Kabsung; Jeon, Jae Sik.

In: European Journal of Scientific Research, Vol. 56, No. 4, 07.2011, p. 539-547.

Research output: Contribution to journalArticle

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