Research On The Relationship Among Land Transfer Revenues, Local Fiscal Expenditure And Real Estate Price

Since the housing system has been reformed, the real estate market has a rapiddevelopment in our country which has gradually become the pillar industry of pullingGDP, and plays an important role in building a well-off society and stabilizing theeconomy. During the period when the real estate market is improving and the scale ofinvestment is increasing, the real estate price is always rising so that it has risen to theheight the average consumer can’t afford. It is bad for healthy and stable developmentof the real estate industry in microscopic view. At the same time, it will do badinfluence on the whole national economy in macro perspective. At present, theexploration of mechanism behind rising prices mostly focus on the heterogeneity ofthe social, political, economic, regional, policy and real estate aspects. With the rapidgrowth of the land transfer revenues, the proportion of the land price accounting forthe real estate price is rising year after year. The rigid demand and the demand forimproving is growing caused by the promotion of urbanization that play more andmore significant role of arising the real estate price. As a part of the policy factors offinancial revenue and expenditure, it gradually becomes the top priority of scholarsresearching the real estate price fluctuations.Based on the theoretical analysis of the influence on the real estate price by theland transfer revenues and local fiscal expenditure, and in the premise of the theory offour quadrant model and fiscal decentralization, and based on the present situation ofrevenue and expenditures of local governments and the real estate market, this paperprovides the relevant policy recommendations through the empirical analysis of theeffects on the real estate price by land transfer revenues and local fiscal expenditure.Firstly, it introduces the relevant theories of land transfer revenues and local fiscalexpenditure. In the aspect of the conduction mechanism of the land price on the realestate price, it instructions the land price theory, and explain the fluctuationmechanism of the real estate price and the land price by the four quadrant model. Inthe aspect of the effects on the real estate price by local fiscal expenditure, it focuseson introducing the related theory of fiscal decentralization and the Tiebout model, andexpands the Tiebout model, using the mathematical model to analyze the pathway.Secondly, it build a general outline for the current situation of land transfer revenues,local fiscal expenditure and real estate price. In the aspect of land transfer revenues, it introduces the evolution of the national and regional land price. In the aspect of localfiscal expenditure, it introduces the situation of the national and regional fiscalexpenditure. In the aspect of the real estate price fluctuations, it introduces thesituation and the difference of the national and regional real estate price, and analyzesthe trend of the real estate price which is impacted by the land transfer revenues andthe local fiscal expenditure. Thirdly, it makes the causality tests among3facts, whileit makes use of the panel data of30provinces to build four panel error correctionmodels, so that it gets the accurate quantitative analysis. According to the empiricalresults, chapter6puts forward the corresponding policy recommendations combiningwith the current situation of fluctuations in the real estate price and the developmentof the real estate market in China.