Journal of Applied Finance & Banking

Real estate prices, fiscal revenue and economic growth

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  • 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.