Impact Fees and Real Estate Prices: Evidence from 35 Chinese Cities

Xiaofang Dong (), Shihe Fu () and Yufei Yuan ()
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Yufei Yuan: Wang Yanan Institute for Studies in Economics (WISE), Xiamen University, Xiamen 361005, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2013, vol. 8, issue 2, 207-219

Abstract: Local governments often charge developers impact fees to finance local public goods. This has been practiced in Chinese cities for more than two decades; however, no empirical studies have tested the effect of impact fees on real estate prices. Using a panel data set for 35 large- and medium-sized cities from 1998 to 2008, we find that impact fees lead to a significant increase in real estate prices. For a given city, an increase in impact fees by one yuan leads to an increase of about 5 yuan in the price of newly-built housing; a 1% increase in impact fees leads to an increase of 5 percentage points in the housing price index and 7 percentage points in the land price index.

Keywords: impact fee; real estate price; local public finance (search for similar items in EconPapers)
JEL-codes: H71 R30 R31 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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http://journal.hep.com.cn/fec/EN/10.3868/s060-002-013-0010-3 (application/pdf)

Related works:
Working Paper: Impact fees and real estate prices: evidence from 35 Chinese cities (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:8:y:2013:i:2:p:207-219

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