Dynamic Analysis of Tax Influence on Housing Price, Supply and Demand

To study the relationship between tax policy and housing economic system is very meaningful to promote the reasonable and balanced development of the housing market. In this paper a system dynamics model is established to simulate the housing market. China's housing industry is faced with a great adjustment after the rapid development. Tax policy is one of the most important tools for the government to intervene in economic activities and balance the housing market. It also has a unique function in guiding the rational allocation of real estate resources and fair distribution of social wealth. For those reasons, this paper analyzes the mechanism of urban housing system, explores the root causes of high housing prices, contradictions of housing supply and demand. In the mean while, a system dynamic model is established to measure different effects on housing market supply and demand, housing prices and other factors from different tax policies, which leads to reform direction of the tax policies in housing market.