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Imputed rent and distributional effects of housing-related policies in Estonia, Italy and the United Kingdom

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  • Virginia Maestri

    (AIAS, University of Amsterdam)

Abstract

Housing policies are a complex set of taxes, benefits and incentives. This paper evaluates the redistributive effect of a comprehensive set of housing-related policies, taking into account the housing advantage of homeowners and social tenants. We use the Euromod microsimulation model to simulate housing policies in Estonia, Italy and the United Kingdom. Disentangling the contribution to inequality and poverty of each housing-related policy, we find that the current design of property taxes is not progressive and that other housing policies have a limited impact on inequality in Estonia and on both inequality and relative poverty in Italy. Only in the UK are housing policies more important than imputed rent in reducing inequality and poverty. In all three countries, housing-related policies favor the elderly. Although the United Kingdom has the most effective system of housing policies, Estonia seems to have the most efficient one.

Suggested Citation

  • Virginia Maestri, 2013. "Imputed rent and distributional effects of housing-related policies in Estonia, Italy and the United Kingdom," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 13(2), pages 35-58, December.
    • Handle: RePEc:bic:journl:v:13:y:2013:i:2:p:35-58
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    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2013.10840532
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    References listed on IDEAS

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    1. European Commission, 2014. "Tax reforms in EU Member States - 2014 Report," Taxation Papers 48, Directorate General Taxation and Customs Union, European Commission.
    2. European Commission, 2013. "Taxation trends in the European Union: 2013 edition," Taxation trends 2013, Directorate General Taxation and Customs Union, European Commission.
    3. European Commission, 2015. "Tax reforms in EU Member States - 2015 Report," Taxation Papers 58, Directorate General Taxation and Customs Union, European Commission.
    4. European Commission, 2012. "Taxation trends in the European Union: 2012 edition," Taxation trends 2012, Directorate General Taxation and Customs Union, European Commission.
    5. Dan Andrews & Aida Caldera Sánchez & Åsa Johansson, 2011. "Housing Markets and Structural Policies in OECD Countries," OECD Economics Department Working Papers 836, OECD Publishing.
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    Cited by:

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    2. Jovan Njegic & Milica Stankovic & Dejan Živkov, 2019. "What Wavelet-Based Quantiles Can Suggest about the Stocks-Bond Interaction in the Emerging East Asian Economies?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 69(1), pages 95-119, February.
    3. Dejan Zivkov & Marina Gajic-Glamoclija & Jelena Kovacevic & Sanja Loncar, 2020. "Inflation Uncertainty and Output Growth - Evidence from the Asia-Pacific Countries Based on the Multiscale Bayesian Quantile Inference," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 70(5), pages 461-486, November.
    4. Dejan Živkov & Boris Kuzman & Jonel Subić, 2020. "What Bayesian quantiles can tell about volatility transmission between the major agricultural futures?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(5), pages 215-225.

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    More about this item

    Keywords

    Housing policies; Imputed rent; Inequality; Microsimulation; Property tax;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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