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Tax rate fluctuations of China’s construction industry and real estate industry: a computable general equilibrium analysis

Author(s): Zhou Jia, Miao Chang-Qing

Construction and real estate tax policy can affect the overall socio-economic. We design a computable general equilibrium model to identify the construction industry and real estate industry. According to the 42 departments of China's 2007 input-output table, the corresponding social accounting matrix is worked out, and the model is used to analyze the effect of adjusting the tax rate of construction and real estate on economic development. The simulation shows that reducing tax rates can promote economic development.

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