Home >> Working Paper
Land Primary Market Monopoly and the Provision of Local Public Goods
Read        DownLoad
TitleLand Primary Market Monopoly and the Provision of Local Public Goods  
AuthorZuo Xiang Yin Xingmin  
OrganizationShanghai Institute of Foreign Trade,CCES Fudan University;, 
Key WordsLand primary market monopoly; Economic public goods; Non-economic public goods 
AbstractUnder current institution system, local government is not only the provider of public goods, but also a monopoly of the land transaction market and the "entrepreneur" running the state-owned land. This paper studies the impact of "Land Finance" on the provision of local public goods. We build a simple model showing that despite controlling more land resources will relax the financial constraints, it also increases the marginal revenue of economic public goods and opportunity cost of non-economic public goods, local governments will invest more financial resources to the economic public goods which can increase land value and future fiscal revenue, education, health and other public services is not necessarily beneficiaries of well-off fiscal income. Using the 282 city-level panel data from 2003 to 2008, we found that local governments controlling more land will decrease economic public goods provision significantly. Therefore, factor market reform and the formal management of land value increment is important to improve local public services. 
Serial NumberWP201 
  • Institute of Economics, Chinese Academy of Social Sciences
  • Copyright Economic Research Journal
  • The uploaded articles by this website express the authors’ views, not necessarily the views of this website.
  • Perennial Legal Counsel: Lu Kang (Chong Guang Law Office)
  • ISSN 0577-9154 CN 11-1081/F Postal Distribution Code 2-25l (Domestic) M16 (Overseas)
  • ICP 10211437 (Beijng)
  • No.2,Yuetan Bei Xiaojie, Xicheng District, Beijing 100836, P. R. China
  • Phone/Fax: (+8610) 68034153