TY  - BOOK
AU  - He,Zhiguo
AU  - Nelson,Scott T.
AU  - Su,Yang
AU  - Zhang,Anthony Lee
AU  - Zhang,Fudong
ED  - National Bureau of Economic Research.
TI  - Industrial Land Discount in China: A Public Finance Perspective 
T2  - NBER working paper series
PY  - 2022///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
KW  - Capital Budgeting • Fixed Investment and Inventory Studies • Capacity
KW  - jelc
KW  - General
KW  - Land Use Patterns
KW  - Government Policy
N1  - September 2022; Hardcopy version available to institutional subscribers
N2  - China's land market features a substantial industrial discount: industrial-zoned land is an order of magnitude cheaper than residential land. In contrast to explanations centered on subsidies to industry or promoting industry growth, we emphasize the importance of future tax revenues from the land and find that local public finance incentives can largely rationalize this price gap. Under the "land finance" system, land sales are an important source of revenues for Chinese local governments. We show that local governments, who serve as monopolistic land sellers in China, face a trade-off between supplying residential or industrial land that is determined by the different time profiles of revenues from industrial and residential land sales, local governments' financial constraints, and the extent of local governments' tax revenue sharing with other levels of government
UR  - https://www.nber.org/papers/w30504
UR  - http://dx.doi.org/10.3386/w30504
ER  -