Skip to main content
About HEC About HEC Faculty & Research Faculty & Research Master’s programs Master’s programs MBA Programs MBA Programs PhD Program PhD Program Executive Education Executive Education Summer School Summer School HEC Online HEC Online About HEC Overview Overview Who We Are Who We Are Egalité des chances Egalité des chances Career Center Career Center International International Campus Life Campus Life Stories Stories The HEC Foundation The HEC Foundation Faculty & Research Overview Overview Faculty Directory Faculty Directory Departments Departments Centers Centers Chairs Chairs Knowledge Knowledge Master’s programs Master in
Management Master in
Management
Dual-Degree
programs Dual-Degree
programs
MSc International
Finance MSc International
Finance
Specialized
Masters Specialized
Masters
Visiting students Visiting students Certificates Certificates Student Life Student Life
MBA Programs MBA MBA EMBA EMBA TRIUM EMBA TRIUM EMBA PhD Program Overview Overview HEC Difference HEC Difference Program details Program details Research areas Research areas HEC Community HEC Community Placement Placement Job Market Job Market Admissions Admissions Financing Financing Summer School Youth Leadership Initiative Youth Leadership Initiative Summer programs Summer programs Admissions Admissions FAQ FAQ HEC Online Overview Overview Degree Program Degree Program Executive certificates Executive certificates MOOCs MOOCs
Faculty & Research

Welfare Effects of Housing Transaction Taxes: A Quantitative Analysis with an Assignment Model

13 Dec
2018
2:00 pm
Jouy-en-Josas

Participate

Ajouter au calendrier
2018-12-13T14:00:00 2018-12-13T15:15:00 Welfare Effects of Housing Transaction Taxes: A Quantitative Analysis with an Assignment Model Economics & Decision Sciences Speaker: Marko Tervio  Aalto (joint work with Niku Määttänen) Jouy-en-Josas

Economics & Decision Sciences

Speaker: Marko Tervio 

Aalto

(joint work with Niku Määttänen)

We evaluate the welfare cost of housing transaction taxes with a new assignment model based framework, where welfare effects are driven by distortions in the matching of houses and households. We calibrate the model with data from the Helsinki metropolitan region to assess the impact of a reform where we replace an ad valorem transaction tax with a revenue equivalent property tax. The aggregate welfare gain from this reform increases rapidly with the initial transaction tax rate, with the Laffer curve peaking at about 10\%. The proportion of households that lose out from the reform is nevertheless increasing in the tax rate. We compare our model-based counterfactual aggregate welfare results with welfare calculations based on reduced-form estimates from previous policy evaluation studies; they are broadly in line, despite the latter using data from different housing markets at various levels and changes of the tax rate.

Participate

Ajouter au calendrier
2018-12-13T14:00:00 2018-12-13T15:15:00 Welfare Effects of Housing Transaction Taxes: A Quantitative Analysis with an Assignment Model Economics & Decision Sciences Speaker: Marko Tervio  Aalto (joint work with Niku Määttänen) Jouy-en-Josas