Theoretical Analysis and Empirical Study on Interdependence between Land market and Macroeconomic

The purpose of this paper is to analyze the affect of demand-induced economic growth on land market and that of increasing land supply on economic growth.Theory of economic cycles and cobweb-model are used to elaberate the influences that lagged adjustment of land supply may impose on macroeconomic.Theoretical analysis and empirical approch are applied in the study.The conclusions are as follows: Firstly,the macroeconomic growth and the development of land market are causally related to each other.Secondly,there is positive correlation among GDP,land supply and market land value,the land supply change is more sensitive to GDP fluctuation than to that of land value.Thirdly,it is demonstrated that China's land supply is lack of flexibility with the land value elasticity coefficient of 0.45.Finally,the early land market produces far less effect on economy than current land market.