Empirical study on interaction between real estate taxes and housing price in China

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Real estate taxes policy is one of the most important macro-control tools for government intervention in the real estate economic activities. This paper examines the short and long run relationships between the real estate taxes and housing price on the basis of cointegration analysis, VAR, ECM and Granger test by employing statistical data from 1988 to 2006. The results indicated that a stable long-run correlation was existed between the two factors. The findings further verified that real estate taxes collection was one of the most important determinants of housing price increase in the long run, whereas housing price had no effect on real estate taxes revenue increase. Housing price would be affected highly by the housing price and real estate taxes revenue lagged one term in the short run.

Original languageEnglish
Title of host publicationStatistic Methods and Applications in Modern China - Conference Proceedings of 2008 International Institute of Applied Statistics Studies
PublisherAussino Academic Publishing House
Pages267-272
Number of pages6
ISBN (Print)9780646497327
StatePublished - 2008
Externally publishedYes
Event2008 International Institute of Applied Statistics Studies - Yantai, China
Duration: 14 Aug 200818 Aug 2008

Publication series

NameStatistic Methods and Applications in Modern China - Conference Proceedings of 2008 International Institute of Applied Statistics Studies

Conference

Conference2008 International Institute of Applied Statistics Studies
Country/TerritoryChina
CityYantai
Period14/08/0818/08/08

Keywords

  • Cointegration Analysis
  • Housing price
  • Property tax
  • Real estate taxes system

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