The Effect Of Government Education Expenditure On Housing Prices

In China,residential commercial housing is a necessities of life,which is a basic requirement for people's livelihood.At the same time,it is also a special commodity that has value preservation and appreciation and can be traded as investment products.Because of its spatial and non-removable characteristics,as well as the certain systems existing in our country,when people choose housing,they also choose the level of infrastructure and public services they can enjoy(education,medical care,transportation,etc.).As a result,the local ancillary facilities and services(including educational resources)have become an important consideration for people when they are choosing a home.In China,government education expenditure affects the status of urban education resources to a large extent,and government education expenditure is a controllable variable.Studying the relationship between government education expenditure and the price of residential real estate is of great significance to building a long-term mechanism for real estate market development in China.This article starts with the theoretical aspects,analyzes and summarizes the previous research data,and uses the real estate four-quadrant model to analyze the two mechanisms of action that lead to changes in housing prices caused by education expenditures,and to obtain the relationship between educational resources and housing prices.On the empirical side,using the random effects model to conduct statistical analysis on the relevant data for the ten years of 34 key cities(excluding Haikou City)in China from 2006 to 2015,to confirm the correctness of the above conclusions.At the same time,cities in different regions(eastern,central,and western)were also observed to find the similarities and differences between the government education spending and housing prices.The results of the study show that,viewed from the country as a whole,local education expenditure has a significant positive effect on the price of residential commodity housing,and residents are willing to pay higher housing prices to obtain higher quality education.From a regional point of view,the impact of educational expenditures on residential real estate in different regions is different:Central government and the eastern region education spending has impact on prices,the western region is not significant.The policy recommendations in this article are as follows:(1)Reducing the relevance of housing locations and educational resources and weakening the effects of educational capitalization;(2)Promoting the balance of educational resources between the regions and narrowing the educational gap between regions;(3)Insulation policy adopted by the city to take appropriate education investment policy.