The Estimation and Determinants of the Price Elasticity of Housing Supply: Evidence from China

34 Pages Posted: 11 Sep 2012

See all articles by Songtao Wang

Songtao Wang

Tsinghua University

Su Han Chan

City University of New York (CUNY) - Department of Real Estate

Bohua Xu

University of Southern California

Date Written: September 10, 2012

Abstract

This paper provides a first look at estimates of the price elasticity of the housing supply in China at both the national and city levels. Using a panel dataset consisting of 35 cities in China from 1998 to 2009, the findings show that the implied national price elasticity of housing supply is between 2.8 and 5.6. The city-level analysis reveals that geographic, economic as well as regulatory factors are significant determinants of the variation in the observed price elasticity of housing supply. The study of a different regulatory and economic environment contributes to the growing literature on supply elasticity and helps explain the seemingly wide variation in supply elasticities observed across cities and countries.

Keywords: China, housing supply, price elasticity

Suggested Citation

Wang, Songtao and Chan, Su Han and Xu, Bohua, The Estimation and Determinants of the Price Elasticity of Housing Supply: Evidence from China (September 10, 2012). Journal of Real Estate Research, Vol. 33, No. 3, 2012, Available at SSRN: https://ssrn.com/abstract=2144250

Songtao Wang

Tsinghua University ( email )

Tsinghua Yuan No. 1, Ming-Zhai 222
Beijing, 100084
China

Su Han Chan (Contact Author)

City University of New York (CUNY) - Department of Real Estate

One Bernard Baruch Way
New York, NY New York 10010
United States

Bohua Xu

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

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