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Statutory Incidence Matters: Evidence from a Policy Intervention in the German Housing Market

Author

Listed:
  • Jörg Claussen
  • David Streich
  • Katerina Vlieg
  • Steffen Zetzmann

Abstract

We study a German policy intervention that shifted the statutory incidence of real estate agent commissions from buyers to sellers. Liability-side equivalence predicts no effect on economic incidence as sellers are expected to pass on the additional burden through higher prices. We use real estate listings and transactions and exploit object-level susceptibility to the intervention in a difference-in-differences analysis. Contrary to economic theory, prices do not increase and sellers bear the burden of the intervention. Consistent with a lack of pass-through, sellers reduce demand for brokerage, especially when brokers are expensive and offer little benefit. Taken together, our results suggest that the intervention was effective at relieving homebuyers.

Suggested Citation

  • Jörg Claussen & David Streich & Katerina Vlieg & Steffen Zetzmann, 2026. "Statutory Incidence Matters: Evidence from a Policy Intervention in the German Housing Market," CESifo Working Paper Series 12618, CESifo.
    • Handle: RePEc:ces:ceswps:_12618
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    Keywords

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    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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