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We conducted various robustness checks for our results in the previous two subsections. First, we conducted two sets of robustness checks for the results on corruption. For the reasons explained in section III.A, we ran the same set of regressions in Table 2 but are now controlling for budget deficits (in logarithmic form) in Table 7. The results remain quite similar to those in Table 2.

Table 7. 
Robustness Check—Corruption—with Budget Deficits
ln(increase in land supply)ln(land sales revenue)
TotalResidentialCommercialIndustrialTotalResidentialCommercialIndustrial
Variables(1)(2)(3)(4)(5)(6)(7)(8)
ln(population increase) 0.409*** 0.388*** 0.426*** 0.443*** 0.632*** 0.677*** 0.676*** 0.565*** 
 (0.0555) (0.0647) (0.0569) (0.0635) (0.0878) (0.0908) (0.0879) (0.0904) 
ln(increase in GDP per capita) 0.0571*** 0.0391*** 0.0667*** 0.0528*** 0.0664*** 0.0736*** 0.101*** 0.0737*** 
 (0.0109) (0.0134) (0.0118) (0.0140) (0.0143) (0.0160) (0.0154) (0.0175) 
ratio of GDPs (tertiary to secondary) −0.276*** −0.194* 0.0981 −0.647*** 0.00877 0.139 0.476** −0.581*** 
 (0.0946) (0.103) (0.130) (0.194) (0.174) (0.172) (0.232) (0.196) 
ln(budget deficit) 0.597*** 0.852*** 0.569** 0.515** 0.143 0.115 −0.0561 0.405 
 (0.226) (0.286) (0.236) (0.259) (0.371) (0.381) (0.356) (0.357) 
fraction of 2-stage (total) 0.871***    0.577**    
 (0.216)    (0.276)    
fraction of 2-stage (residential)  0.816***    0.274*   
  (0.133)    (0.158)   
fraction of 2-stage (commercial)   1.206***    0.474**  
   (0.216)    (0.206)  
fraction of 2-stage (industrial)    0.762*    0.560 
    (0.456)    (0.423) 
Constant 4.486*** 2.823*** −2.970*** 2.492*** 9.548*** 9.382*** 3.712*** 7.618*** 
 (0.336) (0.387) (0.353) (0.555) (0.561) (0.537) (0.483) (0.611) 
Year FE Yes Yes Yes Yes Yes Yes Yes Yes 
Observations 1,403 1,402 1,402 1,394 1,375 1,402 1,391 1,394 
R2 0.525 0.439 0.381 0.466 0.538 0.509 0.446 0.487 
ln(increase in land supply)ln(land sales revenue)
TotalResidentialCommercialIndustrialTotalResidentialCommercialIndustrial
Variables(1)(2)(3)(4)(5)(6)(7)(8)
ln(population increase) 0.409*** 0.388*** 0.426*** 0.443*** 0.632*** 0.677*** 0.676*** 0.565*** 
 (0.0555) (0.0647) (0.0569) (0.0635) (0.0878) (0.0908) (0.0879) (0.0904) 
ln(increase in GDP per capita) 0.0571*** 0.0391*** 0.0667*** 0.0528*** 0.0664*** 0.0736*** 0.101*** 0.0737*** 
 (0.0109) (0.0134) (0.0118) (0.0140) (0.0143) (0.0160) (0.0154) (0.0175) 
ratio of GDPs (tertiary to secondary) −0.276*** −0.194* 0.0981 −0.647*** 0.00877 0.139 0.476** −0.581*** 
 (0.0946) (0.103) (0.130) (0.194) (0.174) (0.172) (0.232) (0.196) 
ln(budget deficit) 0.597*** 0.852*** 0.569** 0.515** 0.143 0.115 −0.0561 0.405 
 (0.226) (0.286) (0.236) (0.259) (0.371) (0.381) (0.356) (0.357) 
fraction of 2-stage (total) 0.871***    0.577**    
 (0.216)    (0.276)    
fraction of 2-stage (residential)  0.816***    0.274*   
  (0.133)    (0.158)   
fraction of 2-stage (commercial)   1.206***    0.474**  
   (0.216)    (0.206)  
fraction of 2-stage (industrial)    0.762*    0.560 
    (0.456)    (0.423) 
Constant 4.486*** 2.823*** −2.970*** 2.492*** 9.548*** 9.382*** 3.712*** 7.618*** 
 (0.336) (0.387) (0.353) (0.555) (0.561) (0.537) (0.483) (0.611) 
Year FE Yes Yes Yes Yes Yes Yes Yes Yes 
Observations 1,403 1,402 1,402 1,394 1,375 1,402 1,391 1,394 
R2 0.525 0.439 0.381 0.466 0.538 0.509 0.446 0.487 

FE = fixed effects, GDP = gross domestic product.

Notes: Population data are from population census data in 2000 and 2010 and authors’ calculations. GDP data are from City Statistics Yearbook. Land data are from the website of the Ministry of Land and Resources. Standard errors are clustered at the province level and shown in parentheses. The fraction of 2-stage (type) is the fraction of all transactions within that prefecture for that type of land (or total) that use a 2-stage auction. It is used to proxy corruption. *** = p < .01, ** = p < .05, * = p < 0.1.

Source: Authors’ calculations.

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