Measuring Total Factor Productivity of China’s Real Estate Industry——Based on the Perspective of Data Reconstruction

Measuring Total Factor Productivity of China’s Real Estate Industry——Based on the Perspective of Data Reconstruction | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Measuring Total Factor Productivity of China’s Real Estate Industry——Based on the Perspective of Data Reconstruction Jinjin Zhao, Yuxin Ding, Zhan Li This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-9196441/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 9 You are reading this latest preprint version Abstract This paper adopts the theory-based double deflation method to measure real value added growth rate of real estate using the reconstructed producer price index of real estate, and also measures capital and labor inputs by following theoretical methods. Moreover, the KLEMS method adopted in this paper is based on gross output production function, taking into account the important role of intermediate inputs. From 1978 to 2018, the growth of both gross output and value added of China’s real estate industry was mainly due to the rapid growth of capital, and TFP played a certain inhibitory role. Based on the decomposition results of the growth rate of value added, the average annual growth rate of TFP during the entire period is -4.0%, while the result obtained by adopting the conventional methods in the existing studies is -0.3%. The measurement errors in both output and input indicators have caused the existing studies to overestimate output and underestimate input, thereby ultimately overestimating the TFP growth rate. The results of this paper have stronger volatility than those obtained by adopting the methods in the existing studies, and volatility may be the concrete manifestation of the actual operational dynamics of China’s real estate industry. JEL Classification: C81 D24 O41 Physical sciences/Engineering Physical sciences/Mathematics and computing real estate total factor productivity KLEMS approach data measurement Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Review Version 1 posted Reviews received at journal 13 May, 2026 Reviews received at journal 12 May, 2026 Reviewers agreed at journal 11 May, 2026 Reviewers agreed at journal 09 Apr, 2026 Reviewers invited by journal 08 Apr, 2026 Editor invited by journal 07 Apr, 2026 Editor assigned by journal 07 Apr, 2026 Submission checks completed at journal 06 Apr, 2026 First submitted to journal 06 Apr, 2026 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-9196441","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Article","associatedPublications":[],"authors":[{"id":620096330,"identity":"273168c8-85e5-4c89-b522-ff75b906d5a6","order_by":0,"name":"Jinjin Zhao","email":"","orcid":"","institution":"Anhui Normal University","correspondingAuthor":false,"prefix":"","firstName":"Jinjin","middleName":"","lastName":"Zhao","suffix":""},{"id":620096331,"identity":"8cb7f5c7-754e-4eb0-872b-9b1d03be7b37","order_by":1,"name":"Yuxin Ding","email":"","orcid":"","institution":"Anhui Normal University","correspondingAuthor":false,"prefix":"","firstName":"Yuxin","middleName":"","lastName":"Ding","suffix":""},{"id":620096332,"identity":"5c8862ba-b554-4010-9723-3e126ddb0d2f","order_by":2,"name":"Zhan Li","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA1UlEQVRIiWNgGAWjYBACPgb+Dwc+8Ngw87M3Nj74QIwWNgYGw4MzZNLYJXsONxvOIFKL8WEem8P8BjfS26Q5iNLCfyDhAE8Os7TkzIcN0gwMdnK6DQRtOXDggMQZNmN+6cQG4wKGZGOzA4S0MDY2HDDs4UmWnJ3YkDyD4UDiNoJamJmByv5J1G+4ebDhMA9RWthATuMxYDa4wdjYTJwWHh6Ggw08CcySPYnNjDMMiPALP/8Z5s9/eP4Do/L48x8fKuzkCGpBAwakKR8Fo2AUjIJRgAMAALAhQhWGNIIIAAAAAElFTkSuQmCC","orcid":"","institution":"Anhui Normal University","correspondingAuthor":true,"prefix":"","firstName":"Zhan","middleName":"","lastName":"Li","suffix":""}],"badges":[],"createdAt":"2026-03-23 06:41:31","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-9196441/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-9196441/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":107098517,"identity":"3d42def4-3951-474d-b967-f68797441ca1","added_by":"auto","created_at":"2026-04-16 18:09:38","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":416332,"visible":true,"origin":"","legend":"","description":"","filename":"RevisedMeasurementofRealEstateTFPshortenanonymous.pdf","url":"https://assets-eu.researchsquare.com/files/rs-9196441/v1_covered_fdd1e7f4-b5b6-4bf1-b164-77f41bfa04b4.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"\u003cp\u003e\u003cstrong\u003eMeasuring Total Factor Productivity of China’s Real Estate Industry——Based on the Perspective of Data Reconstruction\u003c/strong\u003e\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"humanities-and-social-sciences-communications","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"palcomms","sideBox":"Learn more about [Humanities \u0026 Social Sciences Communications](http://www.nature.com/palcomms/)","snPcode":"41599","submissionUrl":"https://submission.springernature.com/new-submission/41599/3","title":"Humanities and Social Sciences Communications","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Nature AJ","inReviewEnabled":true,"inReviewRevisionsEnabled":false},"keywords":"real estate, total factor productivity, KLEMS approach, data measurement","lastPublishedDoi":"10.21203/rs.3.rs-9196441/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-9196441/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis paper adopts the theory-based double deflation method to measure real value added growth rate of real estate using the reconstructed producer price index of real estate, and also measures capital and labor inputs by following theoretical methods. 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