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539期 11月19日:To Build Above the Regulatory Limit? Implementation

539期 11月19日:To Build Above the Regulatory Limit? Implementation of Land Use Regulations in Urban China(Zhi Wang, 复旦大学)
来源:经济学院

【主讲】Zhi Wang (复旦大学)

【主题】To Build Above the Regulatory Limit? Implementation of Land Use Regulations in Urban China

【时间】2014年11月19日(周三) 15:30-17:00

【地点】上海财经大学经济学院楼602室

【语言】英文

【摘要】 This paper studies the implementation of land use regulations in urban China. In particular, we model the decision of a profit-maximizing land developer on how to implement the regulatory floor-to-area ratio constraint. Our empirical analysis uses a unique data set of residential land matched with residential development projects from 30 major Chinese cities. Empirical evidence shows that private developers add more floors in more desirable locations to better capture the value of land. While attractive local amenities tend to induce a developer to build above the regulatory limit (an upward adjustment), a higher penalty cost incurred by obtaining official permissions and paying fines prevents the developer from doing so. However, we find evidence that corruption reduces the penalty cost and thereby boosts the upward adjustment. Specifically, if a developer has won a land parcel through some corruptive deal, then ex post, he gets more tolerant treatment from the government officials in the development of the land and, hence, tends to build more floors above the limit.