The Effect of the Anti-Corruption Campaign in China: Evidence from Housing Transactions

34 Pages Posted: 17 Aug 2019 Last revised: 15 Oct 2019

See all articles by Yongqiang Chu

Yongqiang Chu

Belk College of Business, UNC Charlotte

Weida Kuang

Renmin University of China - School of Business

Daxuan Zhao

Renmin University of China - School of Business

Date Written: July 14, 2019

Abstract

Using price discounts government officials receive when buying new housing units as a measure of corruption in China, we examine the effect of the anti-corruption campaign launched by the Xi Jinping administration in 2012. We find that the discounts decrease sharply after the campaign. On the other hand, we find no effect of the campaign on existing housing sales. Furthermore, we find that officials become less likely to purchase housing units with lucky numbers. Overall, the results suggest the anti-corruption campaign is effective in curbing corruption.

Keywords: Anti-Corruption Campaign, Government Officials, Housing Market, China

JEL Classification: H1, O1, R31

Suggested Citation

Chu, Yongqiang and Kuang, weida and Zhao, Daxuan, The Effect of the Anti-Corruption Campaign in China: Evidence from Housing Transactions (July 14, 2019). Available at SSRN: https://ssrn.com/abstract=3437329 or http://dx.doi.org/10.2139/ssrn.3437329

Yongqiang Chu (Contact Author)

Belk College of Business, UNC Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223
United States
7046877695 (Phone)

Weida Kuang

Renmin University of China - School of Business ( email )

Beijing
China

Daxuan Zhao

Renmin University of China - School of Business ( email )

Beijing
China

HOME PAGE: http://daxuanzhao.weebly.com/

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