The Impact of Land Fiscal Revenue and Household Consumption to Real Estate Prices

摘要

The real estate market enjoys booming development after reform and opening policy in China. However, soaring real estate price generates expanding bubbles in land prices and brings instability to macroeconomy. The factors which stimulate the real estate prices are worth studying so as to serve as reference for the government to stabilize real estate market and the society. In this research, we focus on panel data from 33 main cities from 2013 to 2017 and use fixed effects model to investigate the relation between real estate prices and land finance and household consumption. The results show that the impact of land fiscal revenue on housing prices is very significant. The government will promote the real estate market price when it obtains the main fiscal revenue through transferring the land. Secondly, this paper finds that the consumption level of urban residents will also have a positive impact on housing prices. Residents who have more disposable income will have a positive impact on house prices. Finally, this paper demonstrates the effect of land finance and urban residents' consumption level on housing price fluctuations. It can be used as a reference basis for the government to make decisions and has practical significance for achieving the dual goals of 'stable housing prices and promoting economic development'.