An Empirical Study of the Impact of Land Finance on housing prices
In recent years, the real estate industry has got a stage of vigorous development．At the same time，accompanied by booming real estate market supply and demand situation is the rapid rise in property prices. Property prices is affecting not only ordinary people’s lives and work，but also the country’s macroeconomic trends closely． However, what is the role that local government has played during the housing prices is becoming higher? This article starts by describing the nature of land finance and its formation; analyze the government behavior with game theory models. Based on the data of Shandong province，I will make the empirical tests to do further analysis. Our findings show that the land transfers revenue has positive correlation with local real estate prices. In view of this result，I provide several policy recommendations including property tax levy and standardize the land transfer behavior of local government.
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