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LAND SUPPLY AND CAPITALIZATION OF PUBLIC GOODS IN HOUSING PRICES: EVIDENCE FROM BEIJING
Author(s) -
Zheng Siqi,
Sun Weizeng,
Wang Rui
Publication year - 2014
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12095
Subject(s) - capitalization , beijing , metropolitan area , context (archaeology) , property tax , business , quality (philosophy) , house price , government (linguistics) , finance , economics , geography , china , linguistics , archaeology , epistemology , revenue , monetary economics , philosophy
This paper studies the extent to which spatial heterogeneity in housing prices is affected by housing supply in Beijing's specific context of centralized metropolitan government without local property tax. Taking data sets of residential land leases and private housing sales records from 2006 to 2008 within Beijing's metropolitan area, this paper examines how the capitalization of school quality and subway accessibility in housing prices varies with land availability instrumented by the employment density of state‐owned enterprises (SOEs) at the beginning of SOE reform. Results confirm that the capitalization of school quality and subway accessibility is larger in supply‐constrained locations.