IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v57y2025i59p10753-10770.html

Unlocking code to livability: indemnificatory housing supply, fiscal decentralization, and housing prices in China

Author

Listed:
  • Hao Xu
  • Hao Wang
  • Mingwang Cheng

Abstract

By developing a multi-sector general equilibrium model, this article investigates the nonlinear relationship between indemnificatory housing supply (IHS) and housing prices in China. Utilizing panel data from 31 provinces from 2009 to 2019, we find that the overall effect of IHS on housing prices is negative at the current stage. However, as the IHS expands, this effect transitions from negative to positive, exhibiting a U-shaped relationship driven by a stable demand-shifting effect and an increasingly dominant supply-crowding-out effect. Furthermore, fiscal decentralization exhibits a nonlinear moderating effect, first strengthening and then weakening the effect of IHS on lowering housing prices. Our findings demonstrate the relationship between IHS and housing prices from a nonlinear perspective, highlight the critical role of fiscal decentralization, and provide policy insights for promoting economic growth and improving social welfare.

Suggested Citation

  • Hao Xu & Hao Wang & Mingwang Cheng, 2025. "Unlocking code to livability: indemnificatory housing supply, fiscal decentralization, and housing prices in China," Applied Economics, Taylor & Francis Journals, vol. 57(59), pages 10753-10770, December.
    • Handle: RePEc:taf:applec:v:57:y:2025:i:59:p:10753-10770
    DOI: 10.1080/00036846.2024.2443220
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2024.2443220
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2024.2443220?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mai, Yuhang, 2026. "Do NEV subsidy cuts crowd out housing prices? Evidence from Shanghai, China," Transport Policy, Elsevier, vol. 179(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:57:y:2025:i:59:p:10753-10770. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.