IDEAS home Printed from https://ideas.repec.org/p/sek/iacpro/2804663.html
   My bibliography  Save this paper

Impact of the income tax relief for housing on household indebtedness in EU, 2004-2013

Author

Listed:
  • Barbora Slintáková

    (University of Economics, Prague)

  • Stanislav Klazar

    (University of Economics, Prague)

Abstract

It is common that governments favour home ownership also via personal income taxation. Particularly deductibility of mortgage interest payments can stimulate households to borrow to acquire their dwellings. On the one hand the tax advantage can be effective at achieving social objectives, but on the other hand there is agreement that the housing taxation creates substantial distortion that may increase house prices and household leverage which may have adverse consequences on both micro- and macroeconomic levels. Our aim is to explore whether there is a relation between the advantageous tax treatment of housing and household indebtedness. We employ the multiple regression and pooled cross-sectional data for the former 15 EU member countries (except Greece) for the period 2004-2013. Our analysis reveals that the variable representing the extent of the tax relief on debt financing of the owner-occupied housing affected the variable reflecting indebtedness of European households between 2004 and 2013 positively.

Suggested Citation

  • Barbora Slintáková & Stanislav Klazar, 2015. "Impact of the income tax relief for housing on household indebtedness in EU, 2004-2013," Proceedings of International Academic Conferences 2804663, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:2804663
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/19th-international-academic-conference-florence/table-of-content/detail?cid=28&iid=125&rid=4663
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Household indebtedness; Housing taxation; Mortgage interest deductibility;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iacpro:2804663. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.