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Property tax in China: Is it effective in curbing housing price?

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

Abstract

This paper studies the effects of the property tax. Implemented in Shanghai and Chongqing since January 28, 2011, on the housing price. Applying the synthetic control method of Abadie, Diamond, and Hainmueller (2010), we construct counterfactual housing price for Shanghai and Chongqing using monthly data from 33 cities that have no property tax. Comparing the counterfactual and actual price, we estimate that by November 2012 the average housing price in Shanghai was about 2127 RMB/m2 or 13.4% lower than it would have been in the absence of the property tax. This evidence is found to be significant using placebo test. We find no significant evidence that property tax is effective in curbing the housing price in Chongqing.
Original languageEnglish
Pages (from-to)2465-2474
JournalEconomics Bulletin
Volume33
Issue number4
Publication statusPublished - 2013
Externally publishedYes

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 11 - Sustainable Cities and Communities
    SDG 11 Sustainable Cities and Communities

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