Research on the Influence of Property Tax Policy on Residents’ Consumption Based on Difference-in-Differences Model

DOI

10.2991/978-94-6463-042-8_77How to use a DOI?

Keywords

Property tax; Resident consumption; DID model

Abstract

In recent years, housing prices remain high. In the meantime, the problem of excessive growth becomes increasingly serious. A series of socio-economic pain points brought by high housing prices have become key issues that the government needs to solve urgently. Continued high housing prices have seriously affected the consumption behavior of residents, bringing about changes in consumption scale and consumption structure. This paper presents a survey and a summary of recent research outcomes. First, the relevant literature is reviewed, focusing on the impact of property tax on the total per capita consumption expenditure of urban residents, as well as the heterogeneity effect of tax policies in Shanghai and Chongqing(the first two cities included in the property tax pilot). Second, this work summarizes the theoretical knowledge of property tax legislation, focuses on analyzing the theoretical mechanism of property tax affecting residents' consumption, and provides a theoretical basis for follow-up research. After that, the paper compares the current situation of property tax revenue and housing price changes in Shanghai and Chongqing, aiming to provide a realistic reference for the following analysis. Finally, this paper uses the difference-in-differences (DID) model to empirically test the property tax situation in both cities before and after the property tax reform in 2011. The impact of the reform in Shanghai and Chongqing is studied regarding residents' consumption. Suggestions are put forward for the improvement of the property tax policy implemented later. The results show that a rise in property tax will lead to an increase in the consumption expenditure of urban residents.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Junming Gu
PY  - 2022
DA  - 2022/12/29
TI  - Research on the Influence of Property Tax Policy on Residents’ Consumption Based on Difference-in-Differences Model
BT  - Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)
PB  - Atlantis Press
SP  - 535
EP  - 543
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-042-8_77
DO  - 10.2991/978-94-6463-042-8_77
ID  - Gu2022
ER  -