The housing business cycle of local public finance
Empirical evidence from Taiwan
Bibliographic Data
| ID | 12911154 |
|---|---|
| Authors | Louis Chih-hung Liu (0000-0001-6619-0028, Tunghai University, corresponding author) |
| Year | 2020 |
| Volume | 14 |
| Issue | 3 |
| Pages | 375-390 |
| Publication date | 2020-03-16 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Asian Public Policy (JOURNAL) |
| Journal identifiers | ISSN: 1751-6242 • E-ISSN: 1751-6234 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/17516234.2020.1735011 |
| OpenAlex | W3012328153 |
| Language | EN |
| References cited | 34 |
This paper attempts to investigate the association between local public finance and housing market. We deal with the potential endogeneity problem by utilizing two-stage-least-square (2SLS) model. Our empirical results suggest that (1) the average housing price is positively and significantly associated with local revenue. (2) The average housing price is positively associated with local expenditure, though not significantly. (3) The rise of average housing price is also proven to reduce the local deficit significantly. (4) While the flypaper effect is obvious in Taiwan’s local expenditure, the opportunistic political business cycle theory is not so significant
Business cycle · Econometrics · Economics · Empirical evidence · Endogeneity · Instrumental variable · Local government · Macroeconomics · Politics · Public economics · Public expenditure · Public finance · Revenue · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Housing Market and Economics · Finance
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| Citation velocity | historical |
|---|---|
| Highly cited | No |