Transfer taxes and household mobility: Distortion on the housing or labor market?

Hilber, Christian A. L.; Lyytikäinen, Teemu

doi:10.1016/j.jue.2017.06.002

Cited by 48 publications

(33 citation statements)

References 25 publications

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“…Past OECD research has shown that excessively tight rent regulations can affect the supply of new dwellings and maintenance of the existing rental housing stock and hamper the development of the rental market (Caldera and Johansson, 2013 [27]). This in turn, can lead to shortages of housing supply, exacerbating speculative housing bubbles and increases in household debt posing significant vulnerabilities for macroeconomic stability and economic growth (Hermansen and Röhn, 2016 [28]).…”

mentioning

confidence: 99%

Empirical links between housing markets and economic resilience

Cournède¹,

Sakha²,

Ziemann³

2019

OECD Economics Department Working Papers

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RÉSUME Empirical Links Between Housing Markets and Economic ResilienceHousing markets, which are large and subject to sharp swings, shape to a great extent countries' exposure to economic crises and their capacity to recover from them. This paper analyses the transmission of housing-related shocks to the real economy: it investigates the role that policy plays in (a) mitigating or amplifying shocks and (b) facilitating or hampering a recovery. It considers macroprudential measures, rental regulation, taxation and land use restrictions. The aim is to investigate, which housing policy-related reforms can foster greater economic resilience. Among other results, it finds that a tighter macroprudential stance is generally linked to a lower likelihood of economic crisis and that higher effective rates of housing taxation are associated with smoother housing cycles. JEL Classification codes: E37, E5, R31De taille importante et sujets à de brusques retournements de cycle, les marchés du logement sont, dans une large mesure, un déterminant de l'exposition d'un pays aux crises économiques et de sa capacité à s'en redresser. On analyse dans cette étude la transmission des chocs liés au secteur du logement dans l'économie réelle et l'on s'interroge sur le rôle des politiques publiques et comment elles (a) atténuent ou amplifient les chocs, et (b) facilitent ou entravent le redressement de l'économie. Sont examinées les mesures macroprudentielles, la réglementation locative, la fiscalité et les restrictions à l'occupation des sols. L'objectif est d'examiner, parmi les réformes de la politique du logement, celles qui sont susceptibles d'accroître la résilience de l'économie. Entre autres résultats, on observe qu'une orientation macroprudentielle plus restrictive va généralement de pair avec une plus faible probabilité de crise économique, et qu'une augmentation des taux d'imposition effectifs de l'immobilier résidentiel s'accompagne d'un lissage des cycles sur le marché du logement.Classification JEL : E37, E5, R31

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mentioning

confidence: 99%

Empirical links between housing markets and economic resilience

Cournède¹,

Sakha²,

Ziemann³

2019

OECD Economics Department Working Papers

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“…This alternative nevertheless has a negative score with regard to its impact on property markets. Studies on the stamp duty have revealed that taxation at transactions may have a considerable negative effect on household mobility (Hilber and Lyytikäinen, 2017). The system may make it very unattractive to move away from properties with low ground rents in areas that have become attractive.…”

Section: Comparison Of Alternativesmentioning

confidence: 99%

Land pricing upon the extension of leases in public leasehold systems

Altes

2019

JERER

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Purpose This paper aims to compare and review alternative ways to adjust public ground leases. Design/methodology/approach Based on principles derived from a review of scientific literature, alternatives for the extension of leases are discussed based on the case of Amsterdam. Findings Many alternatives lead public ground-lease systems to produce results that are the opposite of what they are intended to be (as inspired by Henry George): new improvements result in higher rent, but additional location values do not result in higher rent. One exception is the lease-adjustment-at-property-transaction alternative, which may nevertheless result in fewer transactions. Social implications Public leasehold systems are highly contested with regard to the extension of leases. Such systems are often aimed at capturing land-value gains. In practice, however, this tends to be more difficult than expected. Value capture by authorities, as intended by the system, results in counter-movements of lessees, who often gain public support to set lower leases. These political processes may even result in the termination of such public ground-lease systems. This paper reports on a search for possible solutions. Originality/value The comparison of various alternatives to ground-lease extension based on principles derived from literature is new, and it contributes insight into public ground-lease systems.

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“…In an ideal world, the existing council tax and the SDLT-two highly distortive taxes (Hilber, 2015a;Hilber and Lyytikäinen, 2015)-are replaced with a proper annual local property tax with automatic annual revaluation based on neighborhood-specific price changes. Such a tax reform could be designed to be revenue neutral in the aggregate.…”

Section: Foreign Exchangementioning

confidence: 99%

“…They lose out because they (1) live in artificially cramped housing and (2) are increasingly priced out from moving to a larger home that would be more adequate for their growing family. Trading up becomes increasingly difficult, and the problem is made worse by the UK Stamp Duty Land Tax (SDLT) that heavily taxes housing transactions (Hilber, 2015c;Hilber and Lyytikäinen, 2015).…”

mentioning

confidence: 99%

“…Although Besley, Meads, and Surico (2014) found that the tax holiday temporarily increased transactions by 8 percent, Best and Kleven (2015) estimated the effect on the transaction volume to be 20 percent in the short run. Hilber and Lyytikäinen (2015) found that the increase in stamp duty from 1 to 3 percent at the cut-off of £250,000-before the 2014 stamp-duty reform-reduced the annual rate of mobility by 2 to 3 percentage points (a large effect given that the average rate of mobility is 4.6 percent). This adverse effect is confined to short-distance and non-job-related moves, suggesting a distortion in the housing market rather than in the labor market.…”

mentioning

confidence: 99%

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