Limits of Land Capitalization and Its Economic Effects: Evidence from China
Academic debates over the advantages and disadvantages of land capitalization are ongoing in China, but the fundamental issues behind the debate have not been adequately explored. We suggest that the core issue in land capitalization is the degree of capitalization. This study first theoretically deduced the existence of land capitalization limits; then, we used panel data from 35 key cities to conduct an empirical test, and finally we analyzed the current risk of excessive land capitalization in China.