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    Numerical simulation on property tax reform: evidence from China


    Wang, Hui, Wang, Yanyi and Zhang, Shunming (2019) Numerical simulation on property tax reform: evidence from China. Applied Economics Letters, 51 (20). pp. 2172-2194. ISSN 1350-4851

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    Abstract

    This article analyses the property tax reform in China in a computable general equilibrium model that recognizes the interaction between and among housing markets in different provinces and macroeconomic development. Using real data in 2010, we present the benchmark equilibrium for reference property and income tax rates. Then, we examine different property and income tax policies and make a comparison of their production, consumption, welfare and national income. We find that the implementation of property tax would decrease the house production at the expense of welfare in taxed area. The expansion of the taxed regions may increase the total social welfare and national income. Even though property tax policy may not be able to change the income distribution in China, increasing income tax rate could narrow the income disparity. Finally, this article shows the reliability of the conclusions when sensitivity analysis on optimal condition of equilibrium computation is performed under varied property tax policy.
    Item Type: Article
    Keywords: General equilibrium; property tax; income tax; taxation reform;
    Academic Unit: Faculty of Social Sciences > School of Business
    Item ID: 20660
    Identification Number: 10.1080/00036846.2018.1540852
    Depositing User: Yanyi Wang
    Date Deposited: 09 Oct 2025 09:44
    Journal or Publication Title: Applied Economics Letters
    Publisher: Taylor & Francis
    Refereed: Yes
    Related URLs:
    URI: https://mural.maynoothuniversity.ie/id/eprint/20660
    Use Licence: This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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