Fiscal Gap And Transferring Of Commodity Residential Land In Stratified Cities

Ever since the reform of tax-sharing system in 1994,local governments have been burdened with unmatched affair power and finance power which led to tremendous gaps between fiscal revenue and expenditure.Meanwhile,the ratio of the land-transferring fees to the total fiscal revenue rose from 8.49%in 1999 to 60.86%in 2013,which demonstrates that financing via selling leasehold has been an important way to relieve the fiscal pressure of local governments.Notably,residential lands,accounting for 35%of the total transferred construction land,generated 60%of the total land-transferring fees.Additionally,local governments are free enough to manipulate the decision of selling leasehold.Thus,according to the fiscal gap of last year,local governments could adjust their strategies of supplying state-owned lands.In addition,the tendency of real estate between cities distinctly divided since 2012,therefore,researching the land-transferring between cities is of significant importance.Under this background,this thesis utilizes statistics on landchina.com,aiming to find out the influence of local fiscal gap on the difference of land-transferring between stratified cities.In the statistical description part,we display the basic statistics of local fiscal gap and the price and area of commodity residential land(CRL).We find that fiscal gaps have positive correlation with the total area and average price of CRL.Tier-one-or-two cities have a stronger correlation between the area and local fiscal gap,while average price not.In tier-one-or-two cities,the ratios of area of each selling format to total transferred area aren't changed obviously,while the ratio of paimai(English auction)gets higher and guapai(two-stage auction)gets lower in tier-three-or-four,and we find that paimai leads to a higher price than guapai.In the empirical analysis part,we demonstrate the hypothesis raised in the statistical description part and then come to a conclusion.Firstly,local fiscal gap has positive correlation with the total area and average price of CRL on the whole;Secondly,when facing with larger fiscal gap,local governments of tier-one-or-two cities tend to increase the area of transferred CRL,while doesn't change the average price significantly;finally,when facing with larger fiscal gap,local governments of tier-three-or-four cities are inclined to increase less area of transferred CRL than those in tier-one-or-two cities,and then raise the average price significantly via raising the ratio of the area transferred by paimai to the total area.