Empirical analysis of Cognitive bias in Behavioral Finance Model
AUTHORS
Seong-hoon Jeong,Associate professor in Dept. of Economics & International Trade, Catholic University of Daegu, Daegu city, 384-30, South Korea
In-ho Choi,professor in Dept. of Real Estate, Namseoul University, Cheonan city, 331-707, South Korea
ABSTRACT
The purpose of this study is to analyze the cognitive bias of real estate investors using the maximized potential rate of profit model, the maximized potential rate of loss model, the gain of a real estate model and the loss of real estate model and verified the effect of tax policy on investor’s cognitive bias. This study used PRMR-LPMR model which is a frequency model which are used for the potential profit and the loss rate. The result of the study were rejected in the first and second increase of transfer income tax and a second increase of acquisition tax.
KEYWORDS
Acquisition Tax, Transfer Income Tax, Potential Rate of Profit Model, Gain of A Real Estate Model, Loss of Real Estate Model , Tax Policy, PRMR-LRMR Model
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