Capital Gains Taxation and Residential Mobility in Sweden
Theoretical studies have shown that capital gains taxes in the housing market may create lock-in effects but so far no empirical evidence has been presented regarding the size of these effects. For a panel of Swedish house owners in 1984-1990, we show that lock-in effects only appear for households with income reductions; the size of these lock-in effects crucially depends on the magnitude of the income loss. The theoretical model and features of the Swedish tax system imply that lock-in effects depend on the degree of mismatch in the current residence and whether the households buy up or by down.
|Date of creation:||Nov 1995|
|Contact details of provider:|| Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden|
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
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.:
- Borsch-Supan, Axel, 1990. "Panel data analysis of housing choices," Regional Science and Urban Economics, Elsevier, vol. 20(1), pages 65-82, June.
- Englund, Peter, 1986. "Transaction costs, capital-gains taxes, and housing demand," Journal of Urban Economics, Elsevier, vol. 20(3), pages 274-290, November.
- Nakagami, Yasuhiro & Pereira, Alfredo M, 1995. "Inflation, Housing Taxation, and Homeowner Uptrading," Public Finance = Finances publiques, , vol. 50(3), pages 442-469.
- Wheaton, William C, 1990. "Vacancy, Search, and Prices in a Housing Market Matching Model," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1270-1292, December.
- Borsch-Supan, Axel & Pollakowski, Henry O., 1990. "Estimating housing consumption adjustments from panel data," Journal of Urban Economics, Elsevier, vol. 27(2), pages 131-150, March.
- Hanushek, Eric A. & Quigley, John M., 1979. "The dynamics of the housing market: A stock adjustment model of housing consumption," Journal of Urban Economics, Elsevier, vol. 6(1), pages 90-111, January.
- Edin, Per-Anders & Englund, Peter, 1991.
"Moving costs and housing demand : Are recent movers really in equilibrium?,"
Journal of Public Economics,
Elsevier, vol. 44(3), pages 299-320, April.
- Edin, P.A. & Englund, P., 1989. "Moving Cost And Housing Demand: Are Recent Movers Really In Equilibrium?," Papers 1989d, Uppsala - Working Paper Series.
- Lundborg, Per & Skedinger, Per, 1995. "Taxation in a Search Model of the Housing Market," Working Paper Series 431, Research Institute of Industrial Economics.
- Lundborg, Per & Skedinger, Per, 1999. "Transaction Taxes in a Search Model of the Housing Market," Journal of Urban Economics, Elsevier, vol. 45(2), pages 385-399, March. Full references (including those not matched with items on IDEAS)