Revisiting the effects of housing transfer taxes

Bibliographic Data

ID11080525
AuthorsEssi Eerola (0000-0001-6713-6816, VATT Institute for Economic Research), Oskari Harjunen (0000-0002-5089-6533, VATT Institute for Economic Research), Teemu Lyytikäinen (0000-0001-9249-6100, VATT Institute for Economic Research, corresponding author), Tuukka Saarimaa (0000-0001-5671-4836, Aalto University)
Year2021
Volume124
Pages103367
Publication date2021-07-01
Open AccessYes
TypeARTICLE
VenueJournal of Urban Economics (JOURNAL)
Journal identifiersISSN: 0094-1190 • E-ISSN: 1095-9068
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.jue.2021.103367
OpenAlexW3177307996
LanguageEN
Citations received4
References cited24

Housing transfer taxes are fiscally important in many countries despite evidence of substantial welfare costs. We argue that the welfare costs are larger than previously thought because previous studies ignore spillovers between treatment and control groups. We analyze the effect of transfer taxes on household mobility using a quasi-experiment arising from a tax reform. To account for spillovers between treatment and control groups, we use a housing market model calibrated to match the mobility rates in our micro data and our quasi-experimental mobility effect estimate. Ignoring the spillovers leads to a 20% underestimation of the negative mobility effect

Control (management · Demographic economics · Economics · Labour economics · Market economy · Public economics · Transfer (computing · Welfare · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Housing Market and Economics

Tools

Open DOIOpen Access