Please wait a minute...

Frontiers of Economics in China

Front. Econ. China    2016, Vol. 11 Issue (3) : 367-389     https://doi.org/10.3868/s060-005-016-0021-9
Orginal Article
Why Doesn’t the Hong Kong Government Sell More Public Land?
Saku Aura1(),Francis K. Cheung2(),Shawn Ni3()
1. Department of Economics, University of Missouri, Columbia, MO 65211, USA
2. Department of Decision Sciences & Managerial Economics, Chinese University of Hong Kong, Hong Kong, China
3. Department of Economics, University of Missouri, Columbia, MO 65211, USA
Download: PDF(311 KB)  
Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks
Abstract

Why doesn’t the Hong Kong government sell more of its enormous land holding to lower the city’s high housing price and increase the residents’ small living space? We answer the question in an overlapping generations framework. We show that while a rapid and complete privatization of government land is efficient in the absence of externalities; it is made politically difficult by a compensation gap, when the losses of current property owners are greater than the government revenue from land sales. We argue that the cross-country diversity of government land ownership owes to historical incidents in some countries (such as the U.S. in the 19th century) that allowed disposal of government land without filling the compensation gap and the absence of such incidents in others (such as Hong Kong).

Keywords Hong Kong government      land      housing price      privatization      land ownership     
Issue Date: 23 September 2016
 Cite this article:   
Saku Aura,Francis K. Cheung,Shawn Ni. Why Doesn’t the Hong Kong Government Sell More Public Land?[J]. Front. Econ. China, 2016, 11(3): 367-389.
 URL:  
http://journal.hep.com.cn/fec/EN/10.3868/s060-005-016-0021-9
http://journal.hep.com.cn/fec/EN/Y2016/V11/I3/367
Service
E-mail this article
E-mail Alert
RSS
Articles by authors
Saku Aura
Francis K. Cheung
Shawn Ni
Related articles from Frontiers Journals
[1] Yi Che, Zuojun Fan, Yan Zhang. The Effect of Land Reallocation on Off-Farm Employments in Rural China[J]. Front. Econ. China, 2019, 14(3): 401-427.
[2] Ying Chu Ng, Suthathip Yaisawarng. Can a Government Initiate Enterprise Reform to Improve Efficiency? A Cross-Section Analysis of the Chinese Pharmaceutical Industry[J]. Front. Econ. China, 2017, 12(4): 607-634.
[3] Yi Che, Yan Zhang. Legal Knowledge, Land Expropriation, and Agricultural Development in Rural China[J]. Front. Econ. China, 2017, 12(1): 132-166.
[4] Guanzhong James Wen,Jinwu Xiong. The Hukou and Land Tenure Systems as Two Middle Income Traps—The Case of Modern China[J]. Front. Econ. China, 2014, 9(3): 438-459.
[5] Ujjayant Chakravorty,Marie-Helene Hubert,Michel Moreaux. Land Allocation between Food and Energy[J]. Front. Econ. China, 2014, 9(1): 52-69.
[6] Guanzhong James Wen,Jinwu Xiong. Which Type of Urbanization Better Matches China’s Factor Endowment: A Comparison of Population-Intensive Old Puxi and Land-Capital-Intensive New Pudong[J]. Front. Econ. China, 2013, 8(4): 516-534.
[7] Yue Shen, Youjun Xu, Jingming Hao. Strategic Incentive in Mixed Oligopoly[J]. Front Econ Chin, 2011, 6(2): 311-326.
[8] Xinhua Gu. A Synthesized Discussion on the Macao Monetary Reform[J]. Front Econ Chin, 2010, 5(4): 604-621.
[9] CUI Baomin, DENG Hongtu. The nature of land property rights and contract options in institutional changes: A case study of cooperation economy[J]. Front Econ Chin, 2009, 4(2): 250-264.
[10] LI Wei. Property tax and speculative bubble: An empirical analysis of Tianjin[J]. Front Econ Chin, 2008, 3(4): 627-643.
[11] SUN Shengmin. The institutional change under lobbying and the distribution of power ―The case analysis on the changes in land ownership system in China in 1978[J]. Front. Econ. China, 2008, 3(3): 410-429.
Viewed
Full text


Abstract

Cited

  Shared   
  Discussed