The Research On The Relationship Between Land Finance And House Price Level

Since the reform of land-use right and housing system in 1998,Chinese real estate market had entered the stage of marketization development.The growing house price becomes a focus topic which the society pays attention to.Based on the primary measure index and influence factor of the change of commercial house price,in views of experiential analysis that land finance?local government debt and incomes of the land-transferring fees of state-owned land helps to push up prices of commercial house,this article integrates land finance and house price into the unified analysis framework,selects the panel data of 29 provinces?autonomous regions and municipalities from 2000 to 2017.This article makes empirical analysis on the relationship between land finance and house price level by panel VAR.As the result,it is the positive influencing mechanism between land finance and house price.Under the mode of land finance,dependence of local governments on it is enhancing,thus the price of land and house is growing.Furthermore,the growing of house price brings huge incomes of the land-transferring fees for the local government.On the institutional level,the reform of tax-sharing budget management system fiscal centralization leads to the mismatching of local government property rights and power,so land finance is breeding.Local government debt?incomes of the land-transferring fees of state-owned land and so on makes continuous rise of house price.The research conclusion of this article indicates that the reform of Chinese real estate market is a systematic project.It needs the coordination of financial budget management system?land transfer system and other reform measures.At the same time,we must face up to the situation of local government debt,adjust the financial situation between central and local governments scientifically and reasonably.On the policy level,we should explore a healthy development mode of real estate combining policy level and market allocation positively,increase the supply of government social housing,and satisfy the basic survival needs of the public.Besides,the needs of real estate should be disposed by market mechanism,so the growing of house price can be restrained without losing efficiency.In the long term,we must improve the reform of tax-shar-ing budget management system,adjust the relationship between central and local government reasonable,and reverse the situation that the financial resources is concentrated in central government and the mismatching of local government property rights and power for long.Thus we can eliminate the motivation of local government's passion for land finance at the institutional level,and guarantee the sustainable and healthy development of local economy.