An empirical study of the linkage increasing between land prices and house prices from the perspective of the game between local government and enterprises in China

The course of China housing reform leads to a large increase of house and land price. The paper establishes a game model between government and enterprise constructs and explains interior mechanism between house price and land price,considers the long equilibrium of the game between local government and real estate developers are both raising prices initiatively. This paper adopts ADL model, Cointegration Test,Granger causality test and ECM model to research the relationship between land price and house price, and finds that 33% fluctuation of house prices is impacted by land price,the paper elicits a totally different conclusion with ancient research,and considers land prices push the house prices.