Abstract
This paper is the pioneer research considering impacts of new residential stamp duty on TOM. This paper covers space and time information of property transaction via spatial–temporal model, which overcomes the deficits of previous studies by only capturing temporal information. A spatial model selection scheme is adopted in this paper which largely reduces the subjective model selection bias. The results of this paper enable to test and support the important housing theory: when the new residential stamp duty is executed, buyers’ options are limited then TOM is reduced. The reduced TOM implied that buyers intend to suffer high transaction tax of the property on the condition that new residential stamp duty is enforced. They believe that performance of property asset still outperforms the other investment vehicles in Hong Kong. The results of this paper provide valuable information on policy making.
| Original language | English |
|---|---|
| Pages (from-to) | 1117-1130 |
| Number of pages | 14 |
| Journal | Physica A: Statistical Mechanics and its Applications |
| Volume | 503 |
| Early online date | Aug 2018 |
| DOIs | |
| Publication status | Published - 1 Aug 2018 |
| Externally published | Yes |
Bibliographical note
Funding Information:We would like to thank the editor Prof. Eugene Stanley and anonymous referees for their extremely helpful comments. This study was supported by Research Grants of the Hong Kong Polytechnic University (Project Codes: G-YBH9 , 5-ZDAP , G-YBQS and 1-YW3L ).
Publisher Copyright:
© 2018 Elsevier B.V.
Keywords
- Housing market
- New residential stamp duty
- Spatial–temporal model
- Time on the market (TOM)