Why Is the Price Disparity Between Residential and Industrial Land Prices Widening?
A notable phenomenon in China's land market is that residential land prices are substantially higher than industrial ones,and this gap is widening.We construct a theoretical model,which features lo-cal government competition for investment and different demand elasticities for various land uses,to ex-amine the mechanisms that generate this widening disparity in land prices.We then use the 2007-2016 land transaction data to verify our theoretical predictions.Our empirical results show that the price disparity becomes larger when local governments have more power to monopolize housing supply or when their pub-lic finances are more reliant on land revenues.
land marketelasticity of demandland price disparity
NETL
NSTL
万方数据
