Increasing Returns, Land Use Controls and Housing Prices

Dingsheng Zhang, Wenli Cheng and Yew-Kwang Ng ()

No 12-14, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: The Chinese government has been active in trying to cool the alleged bubbles in its housing markets, especially in urban areas. This paper argues that the high housing prices are at least partly caused by some real factors, including the policy of restricting land uses, in particular the maintenance of a minimum overall agricultural acreage. A simple model of three sectors (housing, agriculture, and others) is constructed to examine the effects of the artificial constraint. The role of increasing returns in the non-agricultural sectors in exacerbating the policy biases is also examined. The model is then calibrated to estimate the effects of land use control policy on housing prices in China.

Keywords: increasing returns; land use controls in China; housing prices in China (search for similar items in EconPapers)
JEL-codes: R31 R38 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2012-03
New Economics Papers: this item is included in nep-agr, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.buseco.monash.edu.au/eco/research/paper ... urnszhangchengng.pdf (application/pdf)

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:mos:moswps:2012-14

Ordering information: This working paper can be ordered from
https://www.monash.e ... esearch/publications

Access Statistics for this paper

More papers in Monash Economics Working Papers from Monash University, Department of Economics Department of Economics, Monash University, Victoria 3800, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Simon Angus ().