RT Monograph
SR 00
A1 Bontemps, Christian
A1 Cherbonnier, Frédéric
A1 Magnac, Thierry
T1 Reducing transaction taxes on housing in highly regulated economies
YR 2023
FD 2023-11
VO 23-1486
SP 64
K1 Heterogenous agents
K1 dynamic structural models
K1 general equilibrium
K1 housing
K1 transaction taxes
AB The existence of transaction taxes reduces transactions, and in the case of housing, reduces household mobility and affects the costs of downsizing in dire times. We construct and estimate an overlapping generation model in which households are heterogeneous in age and earnings, and prudential regulation and the tax system are modeled in fine detail. These housing and public policies are likely to affect markets globally, and clearing both rental and property markets is important when evaluating them. We use the institutional and data setting of France, where transactions taxes are some of the highest in Europe, and evaluate the counterfactual impact of reducing transaction taxes from 14% to 6%, similar to US levels. The impact on transactions is strong, but the impact on welfare remains limited.
T2 TSE Working Paper
PB TSE Working Paper
PP Toulouse
AV Published
LK https://publications.ut-capitole.fr/id/eprint/48368/
UL http://tse-fr.eu/pub/128690