Abstract for:Analysis of Korean Housing Policy Based on Policy Mechanism
As housing prices continued to rise over the past two to three years, the government implemented a strong consumer restraint policy. Based on same results, some of experts said policy was effective, the other side argues it adversely affects the market. This disagreement often arises from overlooking the systematic side due to allegations based on unilateral consideration. The purpose of this study is to present the system dynamics model that can systematically elucidate changes in the housing market by policy and to analyze the effect of current housing policy in Korea. For the analysis framework, we derive the type of side effect through consideration of policy mechanism. We then develop a model based on the theoretical framework of the housing market analysis and analyze the implications of what side effects the current policy might lead to through the model. Based on the model, this paper could explain the current policy that could lead to polarization between regions. Also, unlike the purpose of the policy, it weakens purchasing power of actual demand.