The Effect of Taxation on Investment Demand in the Real Estate Market: The Italian Experience

Manganelli, Benedetto; Morano, Pierluigi; Rosato, Paolo; Paola, Pierfrancesco De

doi:10.3390/buildings10070115

Cited by 12 publications

(15 citation statements)

References 31 publications

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“…See their paper for further discussion Chambers, Garriga, and Schlagenhauf (2009c). andCampbell and Cocco (2003) analyze mortgage choice in detail, whileLi and Yao (2007) build a model with refinancing costs 7. In a steady state where house prices are not allowed to fluctuate, equation(3)simplifies to equation(2).…”

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confidence: 99%

Implications of US Tax Policy for House Prices, Rents, and Homeownership

Sommer

Sullivan

2018

American Economic Review

158

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This paper studies the impact of the mortgage interest tax deduction on equilibrium house prices, rents, homeownership, and welfare. We build a dynamic model of the housing market that features a realistic progressive tax system in which owner-occupied housing services are tax-exempt and mortgage interest payments are tax-deductible. We simulate the effect of tax reform on the housing market. Eliminating the mortgage interest deduction causes house prices to decline, increases homeownership, decreases mortgage debt, and improves welfare. Our findings challenge the widely held view that repealing the preferential tax treatment of mortgages would depress homeownership. (JEL H24, H31, R21, R31)

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confidence: 99%

Implications of US Tax Policy for House Prices, Rents, and Homeownership

Sommer

Sullivan

2018

American Economic Review

158

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“…The empirical analysis has shown that the impact of personal income tax on GDP is positive, as also shown by Feld and Kirchgässner (2003). Taxation also affects the investor behaviors which can be applied in the process of restarting the economy (Manganelli et al 2020). In the future, negative economic developments may require fiscal consolidation not only at the national level but also at the EU level, which is also linked to the issue of tax harmonization within the EU.…”

Section: Discussionmentioning

confidence: 96%

The Ability of Selected European Countries to Face the Impending Economic Crisis Caused by COVID-19 in the Context of the Global Economic Crisis of 2008

Oravský

Tóth

Bánociová

2020

JRFM

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This paper is devoted to the ability of selected European countries to face the potential economic crisis caused by COVID-19. Just as other pandemics in the past (e.g., SARS, Spanish influenza, etc.) have had negative economic effects on countries, the current COVID-19 pandemic is causing the beginning of another economic crisis where countries need to take measures to mitigate the economic effects. In our analysis, we focus on the impact of selected indicators on the GDP of European countries using a linear panel regression to identify significant indicators to set appropriate policies to eliminate potential negative consequences on economic growth due to the current recession. The European countries are divided into four groups according to the measures they took in the fiscal consolidation of the last economic crisis of 2008. In the analysis, we observed how the economic crisis influences GDP, country indebtedness, deficit, tax collection, interest rates, and the consumer confidence index. Our findings include that corporate income tax recorded the biggest decline among other tax collections. The interest rate grew in the group of countries most at risk from the economic crisis, while the interest rate fell in the group of countries that seemed to be safe for investors. The consumer confidence index can be considered interesting, as it fell sharply in the group of countries affected only minimally by the crisis (Switzerland, Finland).

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“…Most studies have used policies related to transaction or retention links of housing and aggregate national-scale data to assess policy implications on housing prices [56,57]. In addition, they have either framed the analysis in the context of market distortion [47,49,52,58,59], analyzing investment behavior [60,61], or cost-value analysis [62,63]. Many empirical studies have indicated that both transaction and transfer links have significant explanatory power for price differences before and after the implementation of taxes.…”

Section: Real Estate Taxes and House Pricesmentioning

confidence: 99%

Housing Sustainability: The Effects of Speculation and Property Taxes on House Prices within and beyond the Jurisdiction

Rauf

Weber

2022

Sustainability

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Housing plays an essential role in sustainable governance due to its socio-economic and environmental connection. However, the relationship between governance policies, market behavior, and socio-economic outcomes varies geographically and demographically. Therefore, segregated policies developed and implemented may fail to achieve their desired objectives because of the sensitivity of housing policies for their connection to human wellbeing. The effectiveness of housing policies in geographically connected regions is one of the areas that has received little attention in the Canadian context. The study follows a multi-step empirical method using a multiple linear regression model and a difference-in-difference approach to assessing the geographical variation of speculation and property taxes on housing markets. The study confirms that speculation taxes are not an effective tool in curbing house prices. Similarly, considering the role of property taxes in providing public services, delinking property taxes from a potential contributor to house prices would provide a better lens to develop local housing policies. Furthermore, the study also confirms that the housing market can be better assessed at a local scale, considering geographical influence in conjunction with investment trends.

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The Effect of Taxation on Investment Demand in the Real Estate Market: The Italian Experience

Cited by 12 publications

References 31 publications

Implications of US Tax Policy for House Prices, Rents, and Homeownership

Implications of US Tax Policy for House Prices, Rents, and Homeownership

The Ability of Selected European Countries to Face the Impending Economic Crisis Caused by COVID-19 in the Context of the Global Economic Crisis of 2008

Housing Sustainability: The Effects of Speculation and Property Taxes on House Prices within and beyond the Jurisdiction

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