Abstract
How does the housing market respond to a newly imposed value-based property tax? Based on individual property transaction data spanning seven years, we investigate the repercussions of a new property tax on the local housing market in Chongqing, China. In particular, we adopt a fuzzy regression discontinuity approach to examine the impact of the tax policy on house prices, transaction volumes, and the broader social welfare. We find that the property tax in Chongqing has not caused a reduction in house prices, but it has made a non-trivial contribution to local public finance for public housing programs. Our findings suggest that the property tax-capitalization hypothesis is not supported in Chongqing’s context, although the tax improves wealth redistribution. © 2024 informa uK limited, trading as taylor & Francis group
| Original language | English |
|---|---|
| Pages (from-to) | 847-864 |
| Journal | Housing Policy Debate |
| Volume | 35 |
| Issue number | 5 |
| Online published | 16 Jul 2024 |
| DOIs | |
| Publication status | Published - 2025 |
Funding
This study was financially supported by the university of Hong Kong Seed Fund for Basic Research (Project Code:109000323)
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 1 No Poverty -
SDG 10 Reduced Inequalities -
SDG 11 Sustainable Cities and Communities -
SDG 17 Partnerships for the Goals
Research Keywords
- Property tax
- housingprice
- regression discontinuity
- Policy evaluation
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