Impact fees and real estate prices: evidence from 35 Chinese cities
Local governments often charge developers impact fees to finance local public goods. This has been practiced in Chinese cities for more than two decades; however, no empirical studies have tested the effect of impact fees on real estate prices. Using a panel data set for 35 large- and medium-sized cities from 1998 to 2008, we find that impact fees lead to a significant increase in real estate prices. For a given city, an increase in impact fees by one yuan leads to an increase of about 5 yuan in the price of newly-built housing; a 1% increase in impact fees leads to an increase of 5 percentage points in the housing price index and 7 percentage points in the land price index.
|Date of creation:||01 Jun 2012|
|Date of revision:|
|Publication status:||Published in Frontiers of Economics in China 2.8(2013): pp. 207-219|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Burge, Gregory & Ihlanfeldt, Keith, 2009. "Development impact fees and employment," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 54-62, January.
- Wang, Songtao & Yang, Zan & Liu, Hongyu, 2011. "Impact of urban economic openness on real estate prices: Evidence from thirty-five cities in China," China Economic Review, Elsevier, vol. 22(1), pages 42-54, March.
- Yinger, John, 1998. "The Incidence of Development Fees and Special Assessments," National Tax Journal, National Tax Association, vol. 51(n. 1), pages 23-41, March.
- Jing Wu & Joseph Gyourko & Yongheng Deng, 2010.
"Evaluating Conditions in Major Chinese Housing Markets,"
NBER Working Papers
16189, National Bureau of Economic Research, Inc.
- Wu, Jing & Gyourko, Joseph & Deng, Yongheng, 2012. "Evaluating conditions in major Chinese housing markets," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 531-543.
- Jennifer S. Evans-Cowley & Fred A. Forgey & Ronald C. Rutherford, 2005. "The Effect of Development Impact Fees on Land Values," Growth and Change, Wiley Blackwell, vol. 36(1), pages 100-112.
- Yu Ren & Yufei Yuan & Cong Xiong, 2013.
"House Price Bubbles in China,"
WISE Working Papers
2013-10-14, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
- Gyourko, Joseph, 1991. "Impact fees, exclusionary zoning, and the density of new development," Journal of Urban Economics, Elsevier, vol. 30(2), pages 242-256, September.
- Ihlanfeldt, Keith R. & Shaughnessy, Timothy M., 2004. "An empirical investigation of the effects of impact fees on housing and land markets," Regional Science and Urban Economics, Elsevier, vol. 34(6), pages 639-661, November.
- Brueckner, Jan K., 1997. "Infrastructure financing and urban development:: The economics of impact fees," Journal of Public Economics, Elsevier, vol. 66(3), pages 383-407, December.
- Ran Tao & Fubing Su & Mingxing Liu & Guangzhong Cao, 2010. "Land Leasing and Local Public Finance in Chinaâ€™s Regional Development: Evidence from Prefecture-level Cities," Urban Studies, Urban Studies Journal Limited, vol. 47(10), pages 2217-2236, September.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:48047. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.