Economics at your fingertips  

The gradients of power: Evidence from the Chinese housing market

Hanming Fang (), Quanlin Gu and Li-An Zhou

Journal of Public Economics, 2019, vol. 176, issue C, 32-52

Abstract: Using a large, unique dataset on the Chinese housing market, we propose to measure the value of rents associated with government power using the price differences paid by bureaucrat buyers and non-bureaucrat buyers in the housing market. We find that the housing price paid by bureaucrat buyers is significantly lower than non-bureaucrat buyers, after controlling for a full set of characteristics of buyers, houses and mortgage loans. More importantly, we find that the bureaucrat price discounts exhibit salient gradients with respect to their hierarchical ranks, the criticality of their government agencies to real estate developers, and geography. Our empirical results also reveal interesting interactions of hierarchical, critical and geographical gradients of power. Our paper sheds new light on our thinking of private gains of public positions and market value of power in a broader context.

Keywords: Government power; Corruption; Housing market (search for similar items in EconPapers)
JEL-codes: D73 H1 O18 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Gradients of Power: Evidence from the Chinese Housing Market (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.jpubeco.2019.05.004

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2020-02-16
Handle: RePEc:eee:pubeco:v:176:y:2019:i:c:p:32-52