FISCAL EXPENDITURE AND INDUSTRIAL LAND PRICE IN CHINA: THEORY AND EVIDENCE.

This paper aims to discover the mechanism behind the positive correlation between local fiscal expenditure and industrial land price in China, a stylized fact discovered by bivariate and regression analyses. The model shows that if the positive externality of government expenditure on growth is suff...

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Published in:Contemporary Economic Policy Vol. 38; no. 4; pp. 593 - 607
Main Authors: Tsai, Pi‐Han, Huang, Chien‐Yu, Chiang, Tsun‐Feng
Format: Article
Published: Wiley-Blackwell Oct2020
Subjects:
Online Access:View this record in EBSCOhost
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        atl: FISCAL EXPENDITURE AND INDUSTRIAL LAND PRICE IN CHINA: THEORY AND EVIDENCE.
      aug:
        au:
          Tsai, Pi‐Han
          Huang, Chien‐Yu
          Chiang, Tsun‐Feng
        affil:
          College of Economics, Zhejiang University, Hangzhou 310027,, China
          Institute of Urban Development, Nanjing Audit University, Nanjing 211815,, China
          School of Economics, Henan University, Kaifeng 475001,, China
      su:
        China
        Microeconomics
        Public spending
        Real property sales & prices
        Bivariate analysis
        Regression analysis
      sug:
        subj:
          Microeconomics
          Public spending
          China
          Public Finance Activities
          Offices of Real Estate Agents and Brokers
          Lessors of Other Real Estate Property
          Real property sales & prices
          Bivariate analysis
          Regression analysis
      ab: This paper aims to discover the mechanism behind the positive correlation between local fiscal expenditure and industrial land price in China, a stylized fact discovered by bivariate and regression analyses. The model shows that if the positive externality of government expenditure on growth is sufficiently high, the local government has an incentive to increase public spending in exchange for the reduced demand for industrial land by charging a higher markup and driving up the industrial land price. Therefore, we observe a positive correlation between the local fiscal expenditure and industrial land price.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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