We develop a stylized model to explore the relationship between local corruption and over-investment in residential housing sector. The model has four predictions: i) higher corruption increases investment in the residential housing sector, ii) higher corruption decreases investment in the...

In this paper we investigate the long-run and short-run relationship between housing investment and economic growth in China using the quarterly province-level panel data for the period 1999 q1 to 2007 q4. Recently developed econometric techniques for panel unit root testing and heterogeneous...