Budget deficit has been a common fiscal pressure facing Chinese cities since the 1994 fiscal reform. Meanwhile, land lease sales have become a signi?cant o¤-budgetary revenue to local governments since 2003. This paper investigates whether ?nancing budget deficit is an important driving force...

Rapid house price growth and high price-to-income ratio in major Chinese cities have aroused a hot debate on whether there is an asset bubble in China's residential housing market. To investigate this question, we employ an equilibrium asset-pricing approach, which suggests an non-arbitrage...

While coping with nonsphericality of the disturbances, standard GMM suffers from a blind spot for exploiting the most e¤ective instruments when these are ob- tained directly from unconditional rather than conditional moment assumptions. For instance, standard GMM counteracts that exogenous...