Analysis of the Situation of Real Estate Industry in China and the United States Based on Behavioral Economics

Abstract

In recent a few years, the rapid development of Chinese real estate industry brought a wave of unprecedented prosperity to the Chinese economy, making it jump fast to the second highest in the world in a short time. In our opinion, although this economic cycle seems to be a Kuznets cycle, it is still different from the classical theory put forward by Simon Kuznets when we use the theory of behavioral economics to analyze. The purpose of this article is to analyze the causes and effects of this economic peak from the perspective of macroeconomic management by using the theory and method of behavioral economics.1