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A Tale of Two Policies: Examining Treatment Effects on Housing Prices in Shenzhen, China

Author

Listed:
  • Luya Wang

    (School of Statistics, Capital University of Economics and Business)

  • Zheng Li

    (Department of Agricultural and Resource Economics, North Carolina State University)

  • Qi Li

    (Department of Economics, Texas A&M University)

Abstract

The city of Shenzhen has seen a surge in housing prices. In response, the Shenzhen government implemented policies to make housing more affordable. Two notable policies were implemented between 2016-2018. The first policy increases the supply of land for housing and raises down payment rates. The second policy restricts the sale of houses for a certain period of time. We use the Hsiao et al. (2012) method and factor model method to assess the effectiveness of these policies. Our empirical results suggest that the first policy had significant effects on housing prices while the second policy had no significant effect.

Suggested Citation

  • Luya Wang & Zheng Li & Qi Li, 2023. "A Tale of Two Policies: Examining Treatment Effects on Housing Prices in Shenzhen, China," Annals of Economics and Finance, Society for AEF, vol. 24(2), pages 277-288, November.
    • Handle: RePEc:cuf:journl:y:2023:v:24:i:2:wanglili
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Housing prices; Program evaluation; Panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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