THE OPTIMAL LAND SUPPLY POLICY OF CHINESE LOCAL GOVERNMENT

Yiyao He ()
Additional contact information
Yiyao He: School of Economics, Zhejiang University, Hangzhou, P. R. China

The Singapore Economic Review (SER), 2023, vol. 68, issue 05, 1731-1750

Abstract: This paper constructs a DSGE model to study the relationship between the Chinese local government’s land policy, social welfare and economic fluctuations. I find that increasing the supply of residential land by the local government will reduce housing price and increase social welfare, but it crowds out the amount of industrial land and decreases final output and social welfare as well. This trade-off brings out an optimal supply ratio of residential land, 40%, in deterministic steady-state equilibrium. Besides, the local government is able to use dynamic pro-cyclical residential land supply policy to dampen economic fluctuations in China’s macroeconomy.

Keywords: Land supply; social welfare; economic fluctuations; local government (search for similar items in EconPapers)
JEL-codes: E10 E23 I31 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590819500644
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:wsi:serxxx:v:68:y:2023:i:05:n:s0217590819500644

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590819500644

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().