Liquidity constraints and speculation: Evidence from the housing-resale restriction policy in Qingdao, China

Xiaodong Wang, Shan Yu and Li Zhang

Applied Economics, 2024, vol. 56, issue 60, 9316-9332

Abstract: This article seeks to explore the efficacy of the Housing-Resale Restriction (HRR) policy in curtailing housing speculation, complementing existing literature that primarily examines the impact of taxation. The HRR policy directly reduces speculative opportunities through heightened liquidity constraints. Employing the methodology of regression discontinuity in time (RDiT), this study analyzes the impact of liquidity constraints on housing price growth rates based on the monthly community-level data from Qingdao, China, where the HRR policy was the most stringent in terms of scope and holding time requirement. The results show that the HRR policy reduced housing price growth rates by 1.3881 to 2.1001% points on average. Moreover, the disincentive impact was less pronounced in affluent, recently developed communities and those near subway stations. These findings provide valuable insights for policymakers to regulate the real estate market, mitigate excessive speculation, and prevent market bubbles.

Date: 2024
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2024.2301976 (text/html)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:taf:applec:v:56:y:2024:i:60:p:9316-9332

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2024.2301976

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().