Property Tax in China: Is It Effective in Curbing Housing Price?
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.
Volume (Year): 33 (2013)
Issue (Month): 4 ()
|Contact details of provider:|| |
References listed on IDEAS
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.:
- Michael Keen & Alexander Klemm & Victoria Perry, 2010. "Tax and the Crisis," Fiscal Studies, Institute for Fiscal Studies, vol. 31(1), pages 43-79, 03.
- Jinjarak, Yothin & Noy, Ilan & Zheng, Huanhuan, 2013.
"Capital controls in Brazil – Stemming a tide with a signal?,"
Journal of Banking & Finance,
Elsevier, vol. 37(8), pages 2938-2952.
- Yothin Jinjarak & Ilan Noy & Huanhuan Zheng, 2013. "Capital Controls in Brazil - Stemming a Tide with a Signal?," NBER Working Papers 19205, National Bureau of Economic Research, Inc.
- Jinjarak, Y & Noy, I & Zheng, H, 2012. "Capital Controls in Brazil: Stemming a Tide with a Signal?," Working Paper Series 2391, Victoria University of Wellington, School of Economics and Finance.
- Yothin Jinjarak & Ilan Noy & Huanhuan Zheng, 2012. "Capital Controls in Brazil – Stemming a Tide with a Signal," Working Papers 201213, University of Hawaii at Manoa, Department of Economics.
- Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of Californiaâ€™s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
- Zodrow, George R., 2001. "The Property Tax as a Capital Tax: A Room with Three Views," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 139-56, March.
- Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
- Crowe, Christopher & Dell’Ariccia, Giovanni & Igan, Deniz & Rabanal, Pau, 2013.
"How to deal with real estate booms: Lessons from country experiences,"
Journal of Financial Stability,
Elsevier, vol. 9(3), pages 300-319.
- Pau Rabanal & Christopher W. Crowe & Giovanni Dell'Ariccia & Deniz Igan, 2011. "How to Deal with Real Estate Booms; Lessons From Country Experiences," IMF Working Papers 11/91, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-13-00421. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If references are entirely missing, you can add them using this form.