Assessing the Distributional Effects of Housing Taxation in Italy: From the Actual Tax Code to Imputed Rent
The presence of extensive housing subsidies characterises the current tax systems as inefficient. In this paper, we study whether inefficiency is the price to be paid to improve equity, by assessing the actual distributive impact of housing taxation on Italian households. We concentrate on the personal income tax on the main residence, and compare provisions of the Tax Code with an alternative approach, by considering the imputed rent from owner-occupied dwelling as a component of the Personal Income Tax gross income. Our results suggest that current tax system is just as inefficient as it is inequitable.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard K. Green & Michelle J. White, 1994.
"Measuring the Benefits of Homeowning: Effects on Children,"
Wisconsin-Madison CULER working papers
94-05, University of Wisconsin Center for Urban Land Economic Research.
- Green, Richard K. & White, Michelle J., 1997. "Measuring the Benefits of Homeowning: Effects on Children," Journal of Urban Economics, Elsevier, vol. 41(3), pages 441-461, May.
- Richard K. Green & Michelle J. White, 1994. "Measuring the Benefits of Homeowning: Effects on Children," University of Chicago - George G. Stigler Center for Study of Economy and State 93, Chicago - Center for Study of Economy and State.
- Edward L. Glaeser & Bruce Sacerdote, 1996.
"Why is There More Crime in Cities?,"
Harvard Institute of Economic Research Working Papers
1746, Harvard - Institute of Economic Research.
- Simone Pellegrino & Massimiliano Piacenza & Gilberto Turati, 2011. "Developing a static microsimulation model for the analysis of housing taxation in Italy," International Journal of Microsimulation, International Microsimulation Association, vol. 4(2), pages 73-85.
- Gabriella Berloffa & Paola Villa, 2010. "Differences In Equivalent Income Across Cohorts Of Households: Evidence From Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(4), pages 693-714, December.
- Aaron, Henry, 1970. "Income Taxes and Housing," American Economic Review, American Economic Association, vol. 60(5), pages 789-806, December.
- Callan, Tim & Keane, Claire, 2009.
"Non-cash Benefits and the Distribution of Economic Welfare,"
The Economic and Social Review,
Economic and Social Studies, vol. 40(1), pages 49-71.
- Callan, Tim & Keane, Claire, 2009. "Non-Cash Benefits and the Distribution of Economic Welfare," IZA Discussion Papers 3954, Institute for the Study of Labor (IZA).
- Tim Callan & Claire Keane, 2008. "Non-Cash Benefits and the Distribution of Economic Welfare," Papers WP245, Economic and Social Research Institute (ESRI).
- Yates, Judith, 1994. "Imputed Rent and Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(1), pages 43-66, March.
- Eva Sierminska & Andrea Brandolini & Timothy M Smeeding, 2007. "Comparing wealth distribution across rich countries: the Luxembourg Wealth Study project," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Proceedings of the IFC Conference on "Measuring the financial position of the household sector", Basel, 30-31 August 2006 - Volume 1, volume 25, pages 297-310 Bank for International Settlements.
- Joachim R. Frick & Markus M. Grabka, 2003.
"Imputed Rent and Income Inequality: A Decomposition Analysis for Great Britain, West Germany and the U.S,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 49(4), pages 513-537, December.
- Frick, Joachim R. & Grabka, Markus M., 2003. "Imputed Rent and Income Inequality: A Decomposition Analysis for Great Britain, West Germany and the U.S," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 513-537.
- James M. Poterba, 1992.
"Taxation and Housing: Old Questions, New Answers,"
NBER Working Papers
3963, National Bureau of Economic Research, Inc.
- Yagi, Tadashi & Tachibanaki, Toshiaki, 1998. "Income Redistribution through the Tax System: A Simulation Analysis of Tax Reform," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(3), pages 397-415, September.
- Jorge Onrubia & M. Carmen Rodado & Luis Ayala, 2009.
"How do services of owner-occupied housing affect income inequality and redistribution?,"
112, ECINEQ, Society for the Study of Economic Inequality.
- Onrubia, Jorge & Rodado, M. Carmen & Ayala, Luis, 2009. "How do services of owner-occupied housing affect income inequality and redistribution?," Journal of Housing Economics, Elsevier, vol. 18(3), pages 224-232, September.
- Garner, Thesia I. & Short, Kathleen, 2009. "Accounting for owner-occupied dwelling services: Aggregates and distributions," Journal of Housing Economics, Elsevier, vol. 18(3), pages 233-248, September.
- Jappelli, Tullio & Pistaferri, Luigi, 2007. "Do people respond to tax incentives? An analysis of the Italian reform of the deductibility of home mortgage interests," European Economic Review, Elsevier, vol. 51(2), pages 247-271, February.
- Simone Pellegrino & Achille Vernizzi, 2010. "The 2007 Personal Income Tax Reform in Italy: Effects on Potential Equity, Horizontal Inequity and Re-ranking," Working papers 14, Former Department of Economics and Public Finance "G. Prato", University of Torino.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3368. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klaus Wohlrabe)
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.