Nonlinear Influence of Public Services on Urban Housing Prices: A Case Study of China

Lei Gan, Hong Ren, Weimin Xiang, Kun Wu and Weiguang Cai
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Lei Gan: School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China
Hong Ren: School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China
Weimin Xiang: School of Management Science and Engineering, Chongqing Technology and Business University, Chongqing 400067, China
Kun Wu: School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China
Weiguang Cai: School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China

Land, 2021, vol. 10, issue 10, 1-15

Abstract: Owing to China’s rapid urbanization and internal migration, public services are unevenly distributed in cities, affecting urban housing prices. This study examines the dynamic effect of China’s public service levels on urban housing prices. We used the entropy method to calculate the public service index of 30 cities in China and a panel threshold regression model to explore the relationship between urban public service levels and housing prices. We found that the degree of the effect of public service levels on urban housing prices varies with the per capita disposable income of urban residents, demonstrating an inverted U-shaped curve. The role of public services in promoting urban housing prices increases with the increase in the level of urbanization. When the level of urbanization exceeds its threshold, the enhancement effect increases. These results help us better understand the theories of housing price changes in Chinese cities and support policymakers in formulating effective control measures for the housing market.

Keywords: public service; housing price; nonlinear; threshold model; China (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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