Taxes and the fundamental value of houses

Jakob B. Madsen

doi:10.1016/j.regsciurbeco.2009.01.004

Taxes and the fundamental value of houses

Jakob B. Madsen^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

6 Citations (Scopus)

Abstract

This paper constructs a general equilibrium model of housing prices which can be used to analyze the effects of various taxes on house prices and housing stock. It is shown that taxes have effects on the housing market that are quite different from the effects generated from the conventional user-cost-based models. Empirical estimates for the US show that taxes are highly influential for house prices in the short run as well as in the long run.

Original language	English
Pages (from-to)	365-376
Number of pages	12
Journal	Regional Science and Urban Economics
Volume	39
Issue number	3
DOIs	https://doi.org/10.1016/j.regsciurbeco.2009.01.004
Publication status	Published - May 2009

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10.1016/j.regsciurbeco.2009.01.004

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title = "Taxes and the fundamental value of houses",

abstract = "This paper constructs a general equilibrium model of housing prices which can be used to analyze the effects of various taxes on house prices and housing stock. It is shown that taxes have effects on the housing market that are quite different from the effects generated from the conventional user-cost-based models. Empirical estimates for the US show that taxes are highly influential for house prices in the short run as well as in the long run.",

keywords = "House prices, Housing investment, Taxes, Tobin's q",

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AB - This paper constructs a general equilibrium model of housing prices which can be used to analyze the effects of various taxes on house prices and housing stock. It is shown that taxes have effects on the housing market that are quite different from the effects generated from the conventional user-cost-based models. Empirical estimates for the US show that taxes are highly influential for house prices in the short run as well as in the long run.

KW - House prices

KW - Housing investment

KW - Taxes

KW - Tobin's q

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U2 - 10.1016/j.regsciurbeco.2009.01.004

DO - 10.1016/j.regsciurbeco.2009.01.004

M3 - Article

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VL - 39

SP - 365

EP - 376

JO - Regional Science and Urban Economics

JF - Regional Science and Urban Economics

IS - 3

ER -

Taxes and the fundamental value of houses

Abstract

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