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Property tax and housing wealth inequality: Evidence from China

Author

Listed:
  • Kang, Yankun
  • Sun, Weizeng
  • Wan, Guanghua
  • Yang, Chen

Abstract

This paper empirically investigates the impact of the property tax on housing wealth inequality using the property tax pilot program in China as a quasi-natural experiment. Our findings uncover a significant decrease in the Gini coefficients of the housing wealth in the pilot cities. The main channels at work include evolutionary housing demand from home buyers and the convergence of housing prices for different sizes. Two typical tax-exemption scenarios, based on per capita housing area or total number of housing units, present significant differences in the magnitude of the policy effectiveness as well as the effective channels.

Suggested Citation

  • Kang, Yankun & Sun, Weizeng & Wan, Guanghua & Yang, Chen, 2024. "Property tax and housing wealth inequality: Evidence from China," Journal of Asian Economics, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:asieco:v:94:y:2024:i:c:s1049007824000812
    DOI: 10.1016/j.asieco.2024.101786
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    References listed on IDEAS

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    More about this item

    Keywords

    Housing wealth inequality; Property tax; Housing demand structure; Housing price;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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