דויד דאי

 

1. Can Property Tax Redistribution Increase Housing Supply?

Abstract: This paper quantifies the municipal tax-revenue effects of new construction for different land uses, focusing on built-up industrial and commercial areas and their impact on business tax revenue. Using spatial cointegration tests, we discover a long-term spatio-temporal co-movement of residential and non-residential building starts related to other socio-economic fundamental variables. The paper also simulates the property tax revenue redistribution effect which transfers from the fiscal independent municipals to other peripheral regions. Counterfactual exercises show that the redistribution effect promotes housing starts in peripheral regions and discourages non-residential building starts.

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2. Testing Non-Stationarity of Heterogeneous Spatial Panels

Abstract: I provide an alternative to the spatial panel unit root test. I allow heterogeneous coefficients in the SAR model and multiple cointegration relations. This approach distinguishes two cases: spatial panel cointegration and panel unit root with a spatial error component. When specification tests favor spatial cointegration, a trace test is proposed, and the QMLE of the cointegration relation is used to calculate the trace test statistics. When the specification tests favor the panel unit root, the spatial filter $t_{bar}$ test is proposed, which is the asymptotic equivalence to IPS when $T$ goes to infinity. The small sample properties of the proposed tests are investigated via Monte Carlo methods. These critical values are provided by repeating the estimation of the model under the unit root process for three cases: Case I, where there are no intercepts and no trend. Case II, where there are intercepts only and Case III, where there are both intercepts and trends. 

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3. Reference Pricing, Information Friction, and Housing Demand: Evidence from a Quasi-experiment in China

This study investigates an unprecedented information policy, reference pricing, on subsequent real estate transactions in the Chinese housing market. We use a unique panel dataset to document the effects of the policy on the housing market. We employ city-level housing transactions in the period prior to and after this event to assess its effect on reference pricing. Results provide evidence of a significant decrease in the average seller's time on the market(TOM), which shrinks the transaction volumes. The hypotheses that trading volume and house price decrease are validated by the data. We discuss potential mechanisms that may explain these effects. Further, we find evidence that the information shock effect on house transactions varies with city and market characteristics.