Low Homeownership in Germany - A Quantitative Exploration

Kaas, Leo; Kocharkov, Georgi; Preugschat, Edgar; Siassi, Nawid

doi:10.2139/ssrn.3109347

Cited by 3 publications

(7 citation statements)

References 15 publications

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“…Our welfare results differ from Kaas et al (2020), who find that households in Germany would experience a welfare loss if stamp duty is reduced and labor income taxes adjust to retain revenue neutrality. They highlight that the general equilibrium effect on prices (rental and house prices) is responsible for this welfare loss.…”

Section: Resultscontrasting

confidence: 99%

“…However, the rental price is set such that the price‐to‐rent ratio is unchanged by the tax reform. As a result, rents and prices move together as in Kaas et al (2020). Such an experiment yields an average cev of 0.09% in the property tax case and −0.16% in the consumption tax case.…”

Section: Resultsmentioning

confidence: 99%

“…This structure allows a homeowner to transform their housing from rental to owner‐occupied or vice versa. It allows households to become landlords and supply rental housing without increasing the complexity of the model and is commonly used in recent literature (e.g., Floetotto, Kirker, and Stroebel (2016); Sommer and Sullivan (2018); and Kaas et al (2020)) 17 . The endogenous prices of purchasing and renting a unit of housing are p and

p^{r}

, respectively.…”

Section: Modelmentioning

confidence: 99%

“…Despite the large role of stamp duty in raising taxes, there have been few papers that examine the impact of stamp duty on welfare in a dynamic OLG setting. The one exception we are aware of is by Kaas, Kocharkov, Preugschat, and Siassi (2020). They find, using a similar life‐cycle model, a reduction in stamp duty and an increase in labor income taxes in the German economy reduces the welfare of newborn individuals in steady state 6 .…”

Section: Introductionmentioning

confidence: 99%

“…In equilibrium, there is a decrease in the rental price of housing. This is important since Kaas et al (2020) highlight that the general equilibrium price effects are important in understanding the welfare loss in their environment. Our paper adds to the literature that emphasizes the role of supply conditions when evaluating the response of prices and welfare to changes in the housing market (see, e.g., Graham (2020) and Greenwald and Guren (2020)).…”

Section: Introductionmentioning

confidence: 99%

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Stamping out stamp duty: Housing mismatch and welfare

Cho,

Li,

Uren

2024

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Property transaction taxes—also known as stamp duty—are widely viewed as an inefficient form of taxation. In this paper, we examine the welfare implications of removing stamp duty in a general equilibrium overlapping generation model with heterogeneous agents. Our model features an idiosyncratic shock to housing preferences, which may create mismatch or induce households to move. We calibrate the model to the Australian housing market, and conduct counterfactual policy experiments where stamp duty is replaced with recurrent property or consumption taxes. We find that removing stamp duty raises household mobility and reduces the degree of housing mismatch substantially. When examining steady states, we find that newborn households prefer entering an economy with a recurring property tax rather than one with stamp duty. In contrast, when examining the transition we find that existing households prefer replacing stamp duty with a consumption tax.

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Section: Resultscontrasting

confidence: 99%

Section: Resultsmentioning

confidence: 99%

p^{r}

, respectively.…”

Section: Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Stamping out stamp duty: Housing mismatch and welfare

Cho,

Li,

Uren

2024

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A longitudinal study of the effects of well-being and perceived control on preparations for old age: moderation effects of contexts

Park

Hess²,

Fung³

et al. 2022

Eur J Ageing

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Extending research on determinants of preparations for old age across adulthood, we examined the relationship between well-being, perceived control, and preparations for old age over time, along with variation in the strength of these relationships depending on domains of functioning, cultures, and age. We analyzed longitudinal data from the Ageing as Future study assessing changes in well-being, perceived control, and preparations in four different life domains (social relations, finances, work, and health) across a five-year period collected from adults aged from 30 to 85 years in Germany ( N = 623), Hong Kong ( N = 317), and the USA ( N = 315). Positive feelings about one’s current situation predicted greater perceived control five years later, and vice versa. Also, perceived control and preparations were positively associated over time, with only a few exceptions within each domain. For example, high control beliefs were related to subsequent greater preparations and well-being within the domain of social relations and finances, with weak effects of culture. These results suggest that current well-being may promote adaptive behaviors in later life, with the accumulated effects over time. Thus, focusing on how to improve our well-being may promote engagement in preparations for old age. Our results also indicate that these relations in our model vary by contexts, highlighting the importance of variability in age-related processes.

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The Impact of Perceived Control and Future-Self Views on Preparing for the Old Age: Moderating Influences of Age, Culture, and Context

Park

Fung

Rothermund

et al. 2019

The Journals of Gerontology: Series B

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Objectives Preparation for age-related changes has been shown to be beneficial to adjustment in later life. However, an understanding of the factors that influence such preparations is rather limited. This study examines whether perceived control and future-self views (FSV) influence preparations for old age, and if this influence varies across ages, domains of functioning, and cultures. Methods Assessments of perceived control, FSV, and preparations for old age in each of four different life domains (social relationships, finances, work, and health) were obtained from 1,813 adults (ages 35–85) from Germany, Hong Kong, and the United States. Results Future-self views partially mediated the relationship between perceived control and preparation for old age across both domains of functioning and cultures. With one exception, the association between perceived control and preparations increased with advancing age across contexts. Evidence for similar age-related moderation of the indirect effect of control through FSV was more limited. Discussion These results suggest that perceived control that is not necessarily related to aging affect FSV, which in turn influence preparing for old age. Further, our results indicate that such relationships are context- and age-specific, highlighting the importance of considering the salience and diversity of life domains and cultures.

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Low Homeownership in Germany - A Quantitative Exploration

Cited by 3 publications

References 15 publications

Stamping out stamp duty: Housing mismatch and welfare

Stamping out stamp duty: Housing mismatch and welfare

A longitudinal study of the effects of well-being and perceived control on preparations for old age: moderation effects of contexts

The Impact of Perceived Control and Future-Self Views on Preparing for the Old Age: Moderating Influences of Age, Culture, and Context

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