Research On The Impact Of Public Service Expenditure And Housing Security Expenditure On Commercial Housing Price

As the part of local fiscal expenditures in China,public service expenditures are mainly used in the provision of social public goods such as social security,education,health,etc.and infrastructure construction such as roads,water conservancy,environmental protection,etc.,which have enormous economic positive externalities.According to the Tiebout model,the level of public service is one of the important factors for residents to consider where they live.Therefore,the increase of the level of public services brought about by public service expenditures has resulted in a premium for commercial housing.At the same time,facing high public service expenditures,the local government after the tax-sharing reform transferred the land to attract investment and make up for the fiscal deficit,pushing up the price of commercial housing and intensifying people's housing problem.In order to solve the above problem effectively,the government began to use part of local fiscal expenditures for housing security projects,which can not only solve the housing problem of low-and middle-income families,but also reduce commercial housing prices by diverting the demand for some commercial housing.In order to verify the effectiveness of this decision,this paper deeply explores the relationship among public service expenditures,housing security expenditures and commercial housing prices,accordingly provides an important theoretical basis for the reform of China's fiscal and taxation system,the improvement of the housing security system,and the suppression of commercial housing prices.Firstly,it summarizes the development and current situation of local public finance,housing security system and real estate market,finding that China has a large dependence on land finance,the efficiency of housing security expenditures needs to be improved,and that commercial housing prices remain high,which provides a realistic basis for the study of the following.Secondly,the basic model of the factors affecting commercial housing prices is constructed,and the public service expenditure variable and housing security expenditure variable are added for analysis,besides supplemented by the Supply and Demand Model for demonstration.Then,based on the theoretical analysis results,an empirical model was constructed,and two sets of samples from 31 provincial-level administrative regions from 2010 to 2017 and 35 large and medium-sized cities from 2014 to 2017 were selected for empirical testing.Both theoretical and empirical results show that public service expenditure is significantly positively correlated with commercial housing prices.Housing security expenditures and commercial housing prices have a threshold effect: when the housing security expenditures are low,there is no clear relationship between the two;when housing security expenditures are high,there is a positive correlation between them.Public service expenditures and housing security expenditures interact to strengthen each other's role in promoting commercial housing prices.Finally,in accordance with the findings and conclusions of the research process,we provide suggestions for stabilizing commercial housing prices in China and solving the housing problem of residents: China's taxation system should to be improved as well as the structure of fiscal revenue and expenditure should to be optimized.The scale of housing security expenditure should to be determined reasonably and the relationship between security housing and commercial housing should to be handled correctly.The utilization rate of housing security expenditures should to be improved and the reform of housing security system should to be promoted.