The Impact Of Land Finance On Housing Prices From The Perspective Of Fiscal Decentralization

Since the reform of tax distribution system,China's local government powers and expenditure responsibilities are incompatible.Basically,more than 50% of the fiscal revenue should be borne by more than 80% of the fiscal expenditure,and serious financial problems will lead to great difficulties for local finance.Under the pressure of urbanization and performance evaluation,local governments have a great dependence on land finance,this mainly lies in China's land revenue all owned by the local government,land finance is the second largest finance in China,it is helpful to the development of economy,the local government to complete the performance evaluation.Then the land finance has the inherent power of growing.On the other hand,since the housing system reform in 1998,the housing price in our country has shown a trend of irrational development,the real estate industry also continued hot,have caused serious harm to the social stability and economic development entities.For this phenomenon,scholars from all walks of life have put attention,and have analyzed the current land finance problems and housing price problems from different angles,and puts forward relevant policy recommendations.On the basis of drawing lessons from previous research experience and starting with fiscal decentralization and land finance,this paper focuses on analyzing the institutional factors that affect housing prices,logical thinking is based on theoretical analysis for empirical research.First of all,this paper through combing the development of land finance,the causes of land finance problems and the overall development trend of residential prices,makes a theoretical analysis of how the land finance affects the housing price under the fiscal decentralization.Then through quantitative analysis to verify the results of theoretical analysis,the impact of Land Finance on housing prices can be quantified.And then,the empirical results are analyzed and explained.Finally,on the basis of the empirical results,we try to put forward some countermeasures and suggestions to improve the current land finance,housing prices and financial system.The main research contents and conclusions are as follows:The first part is the introduction,mainly on the research background,research significance and research ideas,methods and so on,and by reading a large number of documents and materials,we have sorted out and summarized the definition and causes of land finance,the influence factors of rising prices,and the relation between the tax sharing system reform,land finance and housing prices.The second part is the relevant theoretical basis,mainly from the fiscal decentralization theory and the rent theory,among them,the theory of fiscal decentralization is an important theoretical support of this article,including the two parts of the traditional fiscal decentralization theory and the modern fiscal decentralization theory.The theory of land rent is related to the land finance of our country,the article also makes a specific exposition of this.The third part is about the causes and development of land finance,and analyzes the causes of land finance from four aspects: tax sharing system reform,land management system,fiscal and taxation system and government related mechanism,and the development course,scale,present situation and regional difference of land finance are expounded.The fourth part is the analysis of the positive impact of Land Finance on housing prices after the reform of the tax sharing system.First of all,the general development trend of housing prices in China was briefly introduced.It was found that the trend of housing prices was basically consistent with the trend of Land Finance.Then it analyzes the influencing factors of housing price,including economic basic factors,demographic factors,expected and speculative factors,as well as government factors.Then,the mechanism of land finance affecting housing prices is summarized from the perspective of fiscal decentralization,and there are three specific transmission mechanisms:First,the local government's monopoly on land supply limits the supply of land,in the face of strong demand,housing prices have risen in demand.Two,land finance affects the development of real estate industry.In the consumer and real estate developers optimistic about the real estate development,housing prices are expected to rise in the background,housing demand is growing and housing prices are rising rapidly.Three,land finance leads to the out of control of housing price control policy,local governments do not have enough incentive to match the central government's regulatory policies.Not only can not make housing prices return to reasonable range,but also by means of bailout to maintain housing prices.The fifth part is the empirical analysis and the result.It mainly includes model establishment,variable selection,sample selection and test analysis,and the regression analysis of land fiscal equation and housing price equation.And do the relative robustness test with the degree of fiscal revenue decentralization.The sixth part is the relevant policy recommendations,based on the theoretical analysis and empirical testing,this paper gives policy recommendations from four aspects of accelerating the reform of the financial system,perfecting the system ofLocal Taxation,standardizing the relevant system of land finance,and reforming and improving the relevant supporting systems.