Xiaofang Dong, Shihe Fu, Yufei Yuan
Author information
a School of Forest Resources, University of Washington, Seattle, WA 98195-2100, USA
b Department of Economics, Iowa State University, Ames, IA 50011, USA
c Department of Economics, Iowa State University, Ames, IA 50011, USA
d Centre for Agriculture and Rural Development, Iowa State University, Ames, IA 50011, USA
e Centre for Agriculture and Rural Development, Iowa State University, Ames, IA 50011, USA
f College of Engineering, North Carolina A&T State University, Greensboro, NC 27411, USA
E-mail: xfangdong@gmail.com (Xiaofang Dong), fushihe@xmu.edu.cn (Shihe Fu), yyuanwise@gmail.com (Yufei Yuan)
Abstract
Local governments often charge developers impact fees to finance local public goods. This has been practiced in Chinese cities for more than two decades; however, no empirical studies have tested the effect of impact fees on real estate prices. Using a panel data set for 35 large- and medium-sized cities from 1998 to 2008, we find that impact fees lead to a significant increase in real estate prices. For a given city, an increase in impact fees by one yuan leads to an increase of about 5 yuan in the price of newly-built housing; a 1% increase in impact fees leads to an increase of 5 percentage points in the housing price index and 7 percentage points in the land price index.
impact fee , real estate price , local public finance
Xiaofang Dong, Shihe Fu, Yufei Yuan. Impact Fees and Real Estate Prices: Evidence from 35 Chinese Cities. Front Econ Chin, 2013, 8(2): 207‒219 https://doi.org/10.3868/s060-002-013-0010-3
