Rent-tax substitution and its impact on firms: Evidence from housing purchase limits policy in China

Zhao, Renjie; Zhang, Jiakai

doi:10.1016/j.regsciurbeco.2022.103804

Cited by 13 publications

(5 citation statements)

References 33 publications

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“…Zhao and Zhang [19] describe an off-plan acquisition in China as buying a property before construction has started or been completed. The buyer can decide what to buy from the blueprints, plans, and computer-generated renderings of the proposed housing project.…”

Section: Literature Reviewmentioning

confidence: 99%

Consensus-Based Measures for Improvement of Off-Plan Sales Program of Housing Units in Real Estate Market of Riyadh City

et al. 2023

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This study aims to review the off-plan sales program to identify the financial and marketing challenges being faced by such programs in Saudi Arabia and formulate consensus-based measures to overcome these challenges. The study implies an analytical descriptive method to achieve its objectives, based on the opinion of experts involved in the off-plan sales program and analyzing the data using the Delphi technique. Various statistical parameters were calculated to validate the obtained results. The study found several challenges being faced by off-plan sales programs, including financing challenges such as mortgaging on the land deed, as well as marketing challenges, including low turnout of the buyers due to the long duration of project implementation. The study concludes with several suggested measures, the most important of which is to find an alternative to the condition of mortgaging the land deed, such as putting insurance on the project or providing a financial bank guarantee. The study contributes to the improvement of the real estate sector of Saudi Arabia and would benefit the construction and development sectors as well.

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Section: Literature Reviewmentioning

confidence: 99%

Consensus-Based Measures for Improvement of Off-Plan Sales Program of Housing Units in Real Estate Market of Riyadh City

et al. 2023

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“…Such policies redirect hou sing demands to nearby non-restricted cities, resulting in a 10.3% increase in land prices in adjacent cities. Zhao and Zhang (2022) discovered that real estate purchase restrictions signif icantly reduce l ocal government land leasing revenues. Faced with fiscal pressure, local governments are compelled to bolster tax enforcement to augment tax revenue.…”

Section: Introductionmentioning

confidence: 99%

Tax substitution: The impact of home-purchase restrictions on corporate tax burden

Wang,

Cao,

Chen

2024

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The purpose of this study is to determine the relationship between local fiscal pressure and the actual tax burden of enterprises. Using China’s home-purchase restriction policy as a quasi-experiment, this study assesses the impact of the policy on firms’ tax burdens in affected areas and researches the relationship between local fiscal pressure and the actual tax burden of enterprises. Drawing from 2006-2014 financial data of Chinese listed companies and using a difference-in-differences approach, the findings show: (1) the policy significantly improved the actual tax burden of enterprises and increased the actual tax burden by around 0.7%; (2) this effect is stronger in areas with stricter restrictions, smaller cities, and the property sector, including related industries; (3) as a response to reduced fiscal revenue from the policy, local governments have adopted tax increase measures such as strengthening collection and management and settling the arrears of taxes, which have promoted the actual tax burden of enterprises. From the perspective of financial pressure, this paper reveals the path for local governments to release financial pressure, which has reference value for interpreting local government behaviors under the Chinese "pressure" financial system and provides a theoretical basis for improving local government governance, reducing government discretion space, and optimizing the business environment.

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“…Notably, the land grant premium accounted for more than 70% of government fund revenue. The sum of public budgetary revenue and land grant premiums exceeded 90% of the local government's total fiscal revenue (Zhao & Zhang, 2022). For convenience, the total revenue of local governments is referred to as the sum of public budgetary revenue and land grant premiums in this paper when we do not specifically refer to other revenues of local governments.…”

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confidence: 99%

Political hierarchy spillovers: Evidence from China

Chen,

Zhang

2023

Economic Inquiry

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This paper explores the impact of the political hierarchies of cities in China from different perspectives. First, we examine the economic disparities between prefectural cities and municipalities. Furthermore, this paper draws upon a quasi‐ experiment to analyze the impact of upgrading Chongqing to a municipality in 1997 using the synthetic control method. The city‐upgrading policy significantly increased Chongqing's gross domestic product (GDP) in the following 4 years. Finally, we find that the policy increased GDP in treated cities within 1200 km of Chongqing by about 10%–13% relative to the control cities.

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Rent-tax substitution and its impact on firms: Evidence from housing purchase limits policy in China

Cited by 13 publications

References 33 publications

Consensus-Based Measures for Improvement of Off-Plan Sales Program of Housing Units in Real Estate Market of Riyadh City

Consensus-Based Measures for Improvement of Off-Plan Sales Program of Housing Units in Real Estate Market of Riyadh City

Tax substitution: The impact of home-purchase restrictions on corporate tax burden

Political hierarchy spillovers: Evidence from China

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