Dual Attributes of Government Intervention and China’s Real Estate Prices—Is Chinese Government a Promoter of the Real Estate Prices?

Abstract

Real estate prices is the most controversial topic of people's livelihood, based on the dual attributes of government intervention,this article analyzes equilibrium properties of real estate prices and government intervention on real estate prices with two-tier stochastic frontier model. The results show that government intervention does play a leading role in the promotion process of real estate prices. Chinese buyers were forced to accept a higher prices than the equilibrium prices, but the net surplus that the government seized from the real estate has been decreasing year by year, the government is intended to make the real estate prices stable through policy intervention; Besides,the degree of intervention shows a significant geographical feature,that is,the eastern region’s intervention is the strongest, followed by the western and the central.