Publication Type

Working Paper

Version

publishedVersion

Publication Date

3-2015

Abstract

The Chinese government imposed the purchase restriction policy to rein in the housing bubble in 2010. Using a two-stage difference-in-difference approach and a comprehensive dataset covering the real estate markets across 70 cities, we find that the policy triggered substantial decline in the property price and transaction volume. Cities having higher reliance on real estate sector for fiscal revenue and economic growth experienced greater decline in housing prices following the policy implementation. However, the policy had no measurable effects on the nationwide construction boom, hinting the ineffectiveness of the policy to correct the housing bubble.

Keywords

Housing purchase restriction policy, housing bubble, China, difference in difference

Discipline

Asian Studies | Finance | Real Estate

Research Areas

Finance

First Page

1

Last Page

46

Identifier

10.2139/ssrn.2584275

Publisher

SSRN

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.2139/ssrn.2584275

Share

COinS