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Discussion of Causation between the House Market Price and Builder's Pre-sale Price by means of the Corn Law debate

  • Korea Real Estate Review
  • 2008, 18(1), pp.71-94
  • Publisher : korea real estate research institute
  • Research Area : Social Science > Law > Law of Special Parts > Law of Real Estate

조훈희 1

1나라감정평가법인 광주전남본부

Candidate

ABSTRACT

The study began from the initial question of effectiveness between the market price vary by builder's pre-sale price and the pre-sale price influent from the market price. The Corn Law debate, a serious altercation between two famous classical economists, T. R. Malthus and D. Ricardo, was a clue of the solution. The logical superiority of Ricardo's opinion, which received wider support historically, applied to the house market, deducted a hypothesis that the builder's pre-sale price can be adjusted by a the high market price and is causative of using expansive land and supplies, and this logic is set as a direction of this study. The hypothesis is in agreement with the statistical meaning. The general price in the housing market is predominant and precedes the decision of pre-sale price from the analytical model of the market price and builder's pre-sale price. The leading effect of market price to the pre-sale price is empirically and logically superior conclusion than the leading of sale price.

Citation status

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