The Impact of Fiscal Tax Policy in The Real Estate Market on Macroeconomic Variables in The People’s Republic of China
This paper develops an overlapping generation (OLG) model to study the impact of fiscal tax policy in the real
estate market on macroeconomic variables in China. The result shows that the individual income tax and real estate transaction
tax can decrease house price, but they have a negative impact on macro economy. Therefore, the government should formulate
appropriate tax policies to carefully control housing prices.
Index Terms - OLG model, individual income tax, real estate transaction tax, policy analysis.