The Nexus between Labour Wages and Property Rents in the Greater China Area

Terence Tai Leung Chong, Kenny Chi Wai Shui and Vivian H Wong

MPRA Paper from University Library of Munich, Germany

Abstract: Tse and Chan (2003) investigated the relationship between property sales price and the value of commuting time without accounting for the fact that property sales price is subject to the inherent limitation of containing speculative elements. A better measure to use for such a study would be the rent paid by the genuine end-user of the property. This paper examines how equilibrium rents in different locations within Greater China are determined by the time value, or the shadow wage, of an individual. Using the rental information, we provide a first estimated ratio of time values for individuals in Hong Kong, Shanghai and Taipei. Our results show that the shadow wage ratio of the households in Hong Kong, Shanghai and Taipei is about 2.25: 1: 1.61.

Keywords: Shadow wage; Property rental price; Central business district. (search for similar items in EconPapers)
JEL-codes: J30 R30 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The nexus between labor wages and property rents in the Greater China area (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:56880

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