Advanced Search
MyIDEAS: Login

Tax Incentives and House Price Volatility in the Euro Area: Theory and Evidence

Contents:

Author Info

  • Paul van den Noord

Abstract

A problem associated with inflation differentials in monetary unions is that the “crowding-in” effect of lower real interest rates associated with high inflation will initially outweigh the loss of competitiveness (crowding out). The crowding-in effect may produce volatility in house prices, especially if tax regimes favour the occurrence of bubbles. This paper shows that this is the case notably in the smaller countries of the euro area, and this could explain the persistence of inflation differentials in the area to some extent ... Incitations fiscales et volatilité des prix d'immobilier dans la zone euro : Théorie et évidence Un problème dû aux différences d'inflation en union monétaire est que, initialement, l'effet stimulant de taux d'intérêt bas venant des taux d'inflation élevés l'emporte sur l'effet perte de compétitivité. L'effet stimulant peut produire une volatilité accrue des prix d'immobilier, surtout lorsque le régime fiscal tend à favoriser l'émergence de bulles. Ce papier démontre que c'est en effet le cas, notamment dans les plus petits pays de la zone euro, ce qui peut expliquer en partie la persistance des différentiels d'inflation dans la zone euro ...

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dx.doi.org/10.1787/410243688730
Download Restriction: no

Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 356.

as in new window
Length:
Date of creation: 28 May 2003
Date of revision:
Handle: RePEc:oec:ecoaaa:356-en

Contact details of provider:
Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Email:
Web page: http://www.oecd.org
More information through EDIRC

Related research

Keywords: taxation; Economic and Monetary Union; fiscalité; Union économique et monétaire;

Other versions of this item:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Thomas Hemmelgarn & Gaetan Nicodeme & Ernesto Zangari, 2011. "The Role of Housing Tax Provisions in the 2008 Financial Crisis," Taxation Papers 27, Directorate General Taxation and Customs Union, European Commission.
  2. D. Isebaert & F. Heylen & C. Smolders, 2010. "Houses and/or jobs: ownership and the labour market in Belgian districts," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 10/695, Ghent University, Faculty of Economics and Business Administration.
  3. Christian Dreger & Konstantin A. Kholodilin, 2011. "An Early Warning System to Predict the House Price Bubbles," Discussion Papers of DIW Berlin 1142, DIW Berlin, German Institute for Economic Research.
  4. Eric Heyer & Sabine Le Bayon & Hervé Péléraux & Xavier Timbeau, 2005. "L’immobilier, pilier de la croissance ou épée de Damoclès," Documents de Travail de l'OFCE 2005-16, Observatoire Francais des Conjonctures Economiques (OFCE).
  5. Thomas Hemmelgarn & Gaëtan Nicodème, 2010. "The 2008 Financial Crisis and Taxation Policy," Working Papers CEB 10-006.RS, ULB -- Universite Libre de Bruxelles.
  6. European Commission, 2010. "Tax Policy after the Crisis: Monitoring Tax Revenues and Tax Reforms in EU Member States 2010 Report," Taxation Papers 24, Directorate General Taxation and Customs Union, European Commission.
  7. Luca Agnello & Ludger Schuknecht, 2009. "Booms and busts in housing markets - determinants and implications," Working Paper Series 1071, European Central Bank.
  8. Christoffer Kok Sørensen & Jung-Duk Lichtenberger, 2007. "Mortage interest rate dispersion in the euro area," Working Paper Series 733, European Central Bank.
  9. Guido Wolswijk, 2005. "On some fiscal effects on mortgage debt growth in the EU," Working Paper Series 526, European Central Bank.
  10. Vieri Ceriani & Stefano Manestra & Giacomo Ricotti & Alessandra Sanelli & Ernesto Zangari, 2011. "The tax system and the financial crisis," PSL Quarterly Review, Economia civile, vol. 64(256), pages 39-94.
  11. Luigi, Bernardi, 2011. "Economic crisis and taxation in Europe," MPRA Paper 31007, University Library of Munich, Germany.
  12. Alan Ahearne & Juan Delgado & Jakob von Weizsäcker, 2008. "A tail of two countries," Policy Briefs 6, Bruegel.
  13. Antipa, P. & Schalck, C., 2009. "Impact of Fiscal Policy on Residential Investment in France," Working papers 270, Banque de France.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:356-en

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.