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Land and residential property markets in a booming economy: New evidence from Beijing

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  • Zheng, Siqi
  • Kahn, Matthew E.

Abstract

Beijing's housing market has boomed over the last fifteen years. The city's population grew by 40.6% and per capita income (in constant RMB) by 273.9% from 1991 to 2005. Using two geocoded data sets, we present new evidence on the real estate price gradient, land price gradient, population densities, and building densities in Beijing's recent free housing market. The classic urban monocentric model's predictions are largely upheld in Beijing. We also document the importance of local public goods, such as access to public transit infrastructure, core high schools, clean air, and major universities, most of which have exogenous locations, as important determinants of real estate prices.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 63 (2008)
Issue (Month): 2 (March)
Pages: 743-757

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Handle: RePEc:eee:juecon:v:63:y:2008:i:2:p:743-757

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Web page: http://www.elsevier.com/locate/inca/622905

Related research

Keywords: Housing market Land market Local public goods Quality of life;

References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Edward L. Glaeser & Matthew E. Kahn, 2001. "Decentralized Employment and the Transformation of the American City," NBER Working Papers 8117, National Bureau of Economic Research, Inc.
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  7. Gibbons, Stephen & Machin, Stephen, 2005. "Valuing rail access using transport innovations," Journal of Urban Economics, Elsevier, vol. 57(1), pages 148-169, January.
  8. Patrick Bajari & Matthew E. Kahn, 2005. "Estimating Housing Demand With an Application to Explaining Racial Segregation in Cities," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 20-33, January.
  9. Kenneth Y. Chay & Michael Greenstone, 1998. "Does Air Quality Matter? Evidence from the Housing Market," NBER Working Papers 6826, National Bureau of Economic Research, Inc.
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  11. Berger, Mark C. & Blomquist, Glenn C. & Sabirianova Peter, Klara, 2008. "Compensating differentials in emerging labor and housing markets: Estimates of quality of life in Russian cities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 25-55, January.
  12. Gyourko, Joseph & Kahn, Matthew & Tracy, Joseph, 1999. "Quality of life and environmental comparisons," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 37, pages 1413-1454 Elsevier.
  13. David Dale-Johnson & Christian L. Redfearn & W. Jan Brzeski, 2005. "From Central Planning to Centrality: Krakow's Land Prices After Poland's Big Bang," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 33(2), pages 269-297, 06.
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  15. Patrick Bajari & C. Lanier Benkard, 2005. "Demand Estimation with Heterogeneous Consumers and Unobserved Product Characteristics: A Hedonic Approach," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1239-1276, December.
  16. Zheng, Siqi & Fu, Yuming & Liu, Hongyu, 2006. "Housing-choice hindrances and urban spatial structure: Evidence from matched location and location-preference data in Chinese cities," Journal of Urban Economics, Elsevier, vol. 60(3), pages 535-557, November.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. China's Future Green Cities
    by Matthew E. Kahn in Environmental and Urban Economics on 2011-12-02 16:10:00
  2. China Goes Green?
    by Matthew E. Kahn in Environmental and Urban Economics on 2011-04-02 02:20:00
  3. The Income Elasticity of Demand for a High Quality Toliet
    by Matthew E. Kahn in Environmental and Urban Economics on 2010-10-02 16:21:00
  4. Designing a High Quality Environmental Economics Course
    by Matthew E. Kahn in Environmental and Urban Economics on 2010-03-10 16:42:00
  5. Chinaâ??s Rising Demand for â??Green Citiesâ?
    by Matthew Kahn in the reality-based community on 2011-04-24 03:07:43
  6. Urbanization and Economic Development
    by Matthew E. Kahn in Environmental and Urban Economics on 2012-06-10 22:13:00
  7. How Should Environmental Economics Be Taught?
    by Matthew Kahn in Environmental and Urban Economics on 2012-07-30 17:56:00
  8. “Green People Power” in China
    by Matthew E. Kahn in The Reality-Based Community on 2012-10-28 22:09:57
  9. My Harvard Business Review Blog Piece on China's Bullet Trains and a History of My Economic Thought About China
    by Matthew Kahn in Environmental and Urban Economics on 2013-04-08 15:50:00
  10. Exploring Green Cities in China
    by Matthew Kahn in Urbanization Project on 2013-04-09 23:17:09
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Du, Hongyan & Ma, Yongkai & An, Yunbi, 2011. "The impact of land policy on the relation between housing and land prices: Evidence from China," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(1), pages 19-27, February.
  2. Siqi Zheng & Matthew E. Kahn, 2011. "Does Government Investment in Local Public Goods Spur Gentrification? Evidence from Beijing," NBER Working Papers 17002, National Bureau of Economic Research, Inc.
  3. Aizenman, Joshua & Jinjarak, Yothin, 2009. "Current account patterns and national real estate markets," Journal of Urban Economics, Elsevier, vol. 66(2), pages 75-89, September.
  4. Christian Dreger & Yanqun Zhang, 2011. "Is there a bubble in the Chinese housing market?," ERSA conference papers ersa11p261, European Regional Science Association.
  5. Zheng, Siqi & Peiser, Richard B. & Zhang, Wenzhong, 2009. "The rise of external economies in Beijing: Evidence from intra-urban wage variation," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 449-459, July.
  6. Wenjie Wu, 2012. "Does Public Investment Spur the Land Market?: Evidence from Transport Improvement in Beijing," SERC Discussion Papers 0116, Spatial Economics Research Centre, LSE.
  7. Siqi Zheng & Matthew E. Kahn & Hongyu Liu, 2009. "Towards a System of Open Cities in China: Home Prices, FDI Flows and Air Quality in 35 Major Cities," NBER Working Papers 14751, National Bureau of Economic Research, Inc.

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