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Real estate prices, fiscal revenue and economic growth

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  • Xiaoyu Gao
  • Anjie Dong

Abstract

This paper attempts to analyze the relationship between government land prices and fiscal revenues, economic growth, to test the short-term and long-term effects of rising real estate prices on fiscal revenue and GDP growth. This paper attempts to explain two problems with empirical data: (1) Whether it is for the government, pushing up house prices cannot escort economic growth, and the long-term utility of the government is conserved; (2) and pushing up house prices at the quantitative level, for the economy and How much quantitative impact fiscal revenue has on the short-term and long-term, respectively. In the end, it is concluded that pushing up house prices does not promote government effectiveness. For the government, it is ultimately tax-equivalent.  JEL classification numbers: G11, G12, G14 Keywords: Real estate price, land finance, economic growth.

Suggested Citation

  • Xiaoyu Gao & Anjie Dong, 2020. "Real estate prices, fiscal revenue and economic growth," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(2), pages 1-7.
    • Handle: RePEc:spt:apfiba:v:10:y:2020:i:2:f:10_2_7
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    References listed on IDEAS

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    More about this item

    Keywords

    real estate price; land finance; economic growth.;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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