Abstract
The stability of the real-estate market is crucial to China’s economic development and, in times of crisis, the economy will experience systemic adverse reactions that require appropriate regulation by the state using tax policy tools. Therefore, we analyzed the impact of real-property tax on house prices using panel data for 31 provinces in China from 2009 to 2020 using an empirical method, i.e., the instrumental variables approach. The empirical results show that each of the previous property-related taxes actually contributed to the increase in house prices and did not have a dampening effect. The newly introduced property tax will lead to a decline in house prices, which will help to alleviate the overheating of real-estate investment and mitigate the real-estate bubble crisis. A rational view of the impact of a property tax on housing prices needs to be taken in the context of factors such as income levels, consumer price levels, loan rates, and Chinese consumer culture. In order to achieve the goal of “no speculation in housing”, we also need to pay attention to the regulating effect of a property tax in combination with many other factors. This study is important for promoting property tax reform, curbing overheated real-estate investment, and promoting healthy economic development.
Funder
National Social Science Fund of China
Subject
Management, Monitoring, Policy and Law,Renewable Energy, Sustainability and the Environment,Geography, Planning and Development,Building and Construction
Reference50 articles.
1. Consumer spending and property taxes;J. Eur. Econ. Assoc.,2019
2. Impacts of Property Tax Levy on Housing Price and Rent: Theoretical Models and Simulation with Insights on the Timing of China Adopting the Property Tax;China Financ. Econ. Rev.,2021
3. Housing characteristics, property tax and house prices;Econ. Res. J.,2009
4. Property taxes and home prices: A tale of two cities;J. Econometr.,2014
5. Micro Analysis on Countercyclical Macro Regulation Policy Performance in Housing Market;Econ. Res.,2011
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献