Interregional housing price comovement is a stylized fact worldwide.This study explores how it is affected by administrative division adjustment.We exploit city-county mergers in China as a quasi-natural experiment to...Interregional housing price comovement is a stylized fact worldwide.This study explores how it is affected by administrative division adjustment.We exploit city-county mergers in China as a quasi-natural experiment to construct a difference-in-differences strategy for causal identification.Based on monthly housing price data for districts(counties)in China from 2010 to 2019,we find that city-county mergers significantly improve correlations in housing prices between the merged county and the urban district.This effect is more obvious in cities with a large economic gap between merged counties and urban districts,located in the central and western regions,and with lower administrative hierarchies(non-provincial-capital cities).The mechanism test shows that the impact of city-county mergers on housing price comovement results mainly from integrating housing demand rather than integrating housing supply,like the unified land supply policy that local government implements in the new administrative scope after mergers.The results are helpful in understanding housing price comovement from the view of regional integration and provide clear policy implications for housing market regulation in China.展开更多
Under the background of Chinese market segmentation,whether governmentled administrative division adjustments can promote regional economic integration is a practical issue.Taking interregional firms’stock price como...Under the background of Chinese market segmentation,whether governmentled administrative division adjustments can promote regional economic integration is a practical issue.Taking interregional firms’stock price comovement as a micro measurement of regional integration,this paper investigates the regional integration effect of administrative division adjustments,i.e.,city–county mergers.We find that stock price comovement between county-level and municipal district-level firms in the merged counties and municipal districts significantly improve after city–county mergers,particularly in regions with a higher degree of market segmentation and lower degree of marketization.We further find that the increase in stock price comovement caused by city–county mergers emerges from the increase in comovement of real activities between firms in the merged counties and municipal districts.Taken together,our results suggest that government-led administrative division adjustments effectively promote regional integration.展开更多
基金the Program for Innovation Research at Central University of Finance and Economics(No.020150321004)the National Natural Science Foundation of China(No.71903210)。
文摘Interregional housing price comovement is a stylized fact worldwide.This study explores how it is affected by administrative division adjustment.We exploit city-county mergers in China as a quasi-natural experiment to construct a difference-in-differences strategy for causal identification.Based on monthly housing price data for districts(counties)in China from 2010 to 2019,we find that city-county mergers significantly improve correlations in housing prices between the merged county and the urban district.This effect is more obvious in cities with a large economic gap between merged counties and urban districts,located in the central and western regions,and with lower administrative hierarchies(non-provincial-capital cities).The mechanism test shows that the impact of city-county mergers on housing price comovement results mainly from integrating housing demand rather than integrating housing supply,like the unified land supply policy that local government implements in the new administrative scope after mergers.The results are helpful in understanding housing price comovement from the view of regional integration and provide clear policy implications for housing market regulation in China.
基金the financial support from the National Natural Science Foundation of China(No.71872199)the Beijing Social Science Foundation(No.20JJB015)+1 种基金the financial support from the Youth Program of National Natural Science Foundation of China(No.71902210)the Youth program of Ministry of Education Humanities and Social Science Research(No.19YJC630092)
文摘Under the background of Chinese market segmentation,whether governmentled administrative division adjustments can promote regional economic integration is a practical issue.Taking interregional firms’stock price comovement as a micro measurement of regional integration,this paper investigates the regional integration effect of administrative division adjustments,i.e.,city–county mergers.We find that stock price comovement between county-level and municipal district-level firms in the merged counties and municipal districts significantly improve after city–county mergers,particularly in regions with a higher degree of market segmentation and lower degree of marketization.We further find that the increase in stock price comovement caused by city–county mergers emerges from the increase in comovement of real activities between firms in the merged counties and municipal districts.Taken together,our results suggest that government-led administrative division adjustments effectively promote regional integration.
