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Spatial inequality and housing in China

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  • Fischer, Thomas

Abstract

This paper investigates the evolution of inequality in China (1978–2015) through the lens of a dynamic spatial general equilibrium model with migration and capital formation. Due to an urban-rural income gap there is domestic migration from the rural to the urban areas which tends to reduce inequality. The resulting increase in urban house prices can, however, constitute an endogenous barrier to further urbanization. Increasing housing prices increase within-urban inequality between renters and landlords and also lock in urban-rural income differences. The calibrated model explains current, and projects future, development in China.

Suggested Citation

  • Fischer, Thomas, 2023. "Spatial inequality and housing in China," Journal of Urban Economics, Elsevier, vol. 134(C).
    • Handle: RePEc:eee:juecon:v:134:y:2023:i:c:s0094119023000013
    DOI: 10.1016/j.jue.2023.103532
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    More about this item

    Keywords

    China; Inequality; Urban-rural divide; Regional migration; Housing;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • D3 - Microeconomics - - Distribution
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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