Search

This paper examines the impact of a policy change in transaction tax on speculators. The policy intervention took place in Singapore's housing market; it effectively raised the transaction cost in a segment favored by short-term speculators. Relative to the unaffected control sample, we find that the rise in transaction cost, equivalent to a two- to three-percentage-point increase in transaction tax, reduced speculative trading in the treatment segment by 75% and raised its price volatility by 18%. It also significantly reduced price informativeness. We further show that the results are likely due to a relatively greater withdrawal by informed speculators than by destabilizing speculators following the transaction cost increase. Keywords: transaction tax; volatility; speculators; informed traders; noise traders; housing market History: Received November 7, 2014; accepted May 5, 2015, by Amit Seru, finance. Published online in Articles in Advance December 16, 2015., 1. Introduction After the global financial crisis, the Tobin tax as a form of financial transaction tax has drawn much attention. On December 11, 2009, the Financial Times reported that [...]

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jue.2006.05.003 Byline: Siqi Zheng (a), Yuming Fu (b), Hongyu Liu (a) Keywords: Bid-rent gradient; Urban spatial structure; Location choice; Housing markets; Transition economies Abstract: In a monocentric city with a well-functioning residential market, Pareto-efficient spatial equilibrium entails the sorting of residents according to their bid-rent gradient in descending order away from city center. Violation of this sorting condition creates opportunities for Pareto-improving trading of locations and can be sustained only if the market is hindered. We propose a simple ordered-location-choice model using matched location and location-preference data of individual households to examine violations of the Pareto-efficient spatial sorting condition. In so doing we are able to identify population groups facing housing-choice hindrances. We find in a sample of Chinese cities undergoing housing market liberalization that poor marketability of the previously state-provided homes, inadequate provision of housing finance, and spatial mismatch between job-market and housing-market opportunities contribute to a Pareto-inefficient spatial structure. Author Affiliation: (a) Institute of Real Estate Studies, Tsinghua University, Beijing 100084, China (b) Department of Real Estate, National University of Singapore, 4 Architecture Drive, Singapore, 117566 Article History: Received 13 March 2005; Revised 8 May 2006

Real estate indices based on appraisals or sale prices of properties are known for their slow response to market news. These indices can therefore be represented (in logarithm) as the [...]

This article evaluates how restrictions on the density of development sites effects land use regulations, by presenting a model which identifies the ratio of building space to lot area. The affects of land prices on redevelopment sites in Shanghai, China's emerging real estate market are measured., This article evaluates how restrictions on the density of development sites effects land use regulations, by presenting a model which identifies the ratio of building space to lot area. The affects of land prices on redevelopment sites in Shanghai, China's emerging real estate market are measured.

Issues regarding the intention to buy commodity housing by Chinese urban workers are discussed. A survey shows this intention to be sensitive to various incentives and the access to publicly subsidized housing is at least as important as the affordability of commodity housing in discouraging private home ownership.

A study examines a liberalized housing market and the impact of government funding for housing in Chinese cities.

Yuming Fu [*] Lilian K. Ng [**] This paper develops a methodology to identify asset price response to news in the framework of the Campbell--Shiller log-linear present-value equation. We further [...]