The Economic Driving Mechanism Of Land Stockpiling

With the rapid increase of real estate prices from2000-2014, land developers s-tockpiling land become common. Land stockpiling is a waste of land resource, so understanding the mechanism of stockpiling is very important. Based on western eco-nomics theory, this paper comes up with the following hypothesis:1. The higher the expected land price, the more the quantity of land stockpiling; The lower the finance ex-pense, the more the quantity of land stockpiling;2. The more uncertainty about future house price, the more the quantity of land stockpiling. We use panel data covering35cities and the empirical results confirm our hypothesis. The empirical results using one way fixed effects model support both hypothesis, but F tests show that we need consider time effects. Adding time effects, the results only show that the expected house price uncertainty matters. Using other methods to define variables can’t change this results basically.