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Welfare Effects of Property Taxation

  • Series
  • Speaker(s)
    Sebastian Siegloch (University of Cologne, Germany)
  • Field
  • Location
    Erasmus University Rotterdam, Campus Woudestein, Polak 2-14
  • Date and time

    September 04, 2023
    11:30 - 12:30

We analyze the welfare implications of property taxation. Using a sufficient statistics approach, we show that the tax incidence depends on how housing prices, labor and other types of incomes as well as public services respond to property tax changes. Empirically, we exploit the German institutional setting with 5,200 municipal tax reforms for identification. We find that higher taxes are fully passed on to rental prices after three years. The pass-through is lower when housing supply is inelastic. Combining reduced form estimates with our theoretical framework, we simulate the welfare effects of property taxes and show that they are regressive. This is joint work with Max Löffler (Maastricht University).

Lunch will be provided. Please register here (before Wednesday 18.00) to participate or if you are interested in a bilateral or want to join for lunch or dinner. Please note that the dinner will take place on Sunday evening and not on Monday evening as usual.