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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front Econ Chin    2013, Vol. 8 Issue (2) : 207-219
research-article |
Impact Fees and Real Estate Prices: Evidence from 35 Chinese Cities
Xiaofang Dong(), Shihe Fu(), Yufei Yuan()
Wang Yanan Institute for Studies in Economics (WISE), Xiamen University, Xiamen 361005, China
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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.

Keywords impact fee      real estate price      local public finance     
Corresponding Authors: Xiaofang Dong,; Shihe Fu,; Yufei Yuan,   
Issue Date: 05 June 2013
 Cite this article:   
Xiaofang Dong,Shihe Fu,Yufei Yuan. Impact Fees and Real Estate Prices: Evidence from 35 Chinese Cities[J]. Front Econ Chin, 2013, 8(2): 207-219.
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