Is the effect of drop limit order policy of the real estate industry in Yue yang city in line with expectations—Empirical analysis based on difference in difference

Abstract

In recent years, the spread of covid-19 has led to a decline in residential consumption levels and a decrease in demand in the housing market. In order to maintain, some housing enterprises started to reduce prices significantly, this move destroyed the market law, and the local government set up the policy of limit drop order in order to restrict the malicious price reduction without following the market law, and it is not known whether the policy of limit drop order can promote the development of the real estate industry while limiting the malicious downgrade, according to the general rule, through the regulation of the real estate market should help the development of the real estate industry, this paper through This paper analyses Yue yang City, the first city to implement the drop restriction policy, through the double difference method. The results show that the drop restriction policy has a certain suppressive effect on the local real estate industry in the short term, while the impact on the market in the long term is yet to be studied.