Housing, financial and capital taxation policies to ensure robust growth

Abstract

Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. ECO/WKP(2013)16 Unclassified English-Or. English ECO/WKP(2013)16 2 ABSTRACT/RÉSUMÉ Housing, financial and capital taxation policies to ensure robust growth in Sweden Extensive structural reforms since the early 1990s have strengthened the resilience of the Swedish economy to shocks. However, more needs to be done to better manage near-term risks and ensure that growth remains sustainable in the longer run. Reforming the housing market would reduce the risks associated with high house prices, ensure adequate residential investment and improve labour mobility and well-being. Clarifying the division of responsibilities in financial regulation and improving the macroprudential toolkit would reduce the risks to stability and the contingent fiscal liabilities arising from a large, concentrated banking system. Better aligning the taxation of different types of assets would make taxation more neutral. This Working Paper relates to the 2012 OECD Economic Survey of Sweden (www.oecd.org/eco/surveys/sweden).