Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190245 
Year of Publication: 
2018
Series/Report no.: 
ADBI Working Paper No. 824
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
In order to deal with the rampant increase in housing prices, the Government of the People's Republic of China implemented the home purchase restriction (HPR) policy to curb speculation and prevent housing bubbles. This policy triggered an exogenous demand shock to the housing market. Employing a two-step difference-in-differences approach, we find significantly negative policy effects on property transaction volume but a small impact on housing prices. Cities relying heavily on land sales for fiscal revenue experience a considerably higher increase in property investments after implementation of the HPR policy.
Subjects: 
home purchase restriction policy
demand shock
housing bubble
land financing
JEL: 
G12
G18
H83
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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