Heterogeneity in Income Tax Capitalization: Evidence from the Swiss Housing Market
Summary There is evidence that taxes capitalize into housing prices, but great uncertainty about the magnitude of income tax capitalization. One explanation why empirical evidence is unclear may stem from the fact that capitalization is something personal, depending on income, mobility, and on the i...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2017-07-01
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| Series: | Swiss Journal of Economics and Statistics |
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| Online Access: | http://link.springer.com/article/10.1007/BF03399508 |
| _version_ | 1819206107682308096 |
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| author | Mario Morger |
| author_facet | Mario Morger |
| author_sort | Mario Morger |
| collection | DOAJ |
| description | Summary There is evidence that taxes capitalize into housing prices, but great uncertainty about the magnitude of income tax capitalization. One explanation why empirical evidence is unclear may stem from the fact that capitalization is something personal, depending on income, mobility, and on the individual tax burden of the bidding households. Therefore, income tax capitalization may theoretically differ substantially between different housing price segments. Results obtained from the analysis of a large Swiss dataset suggest that capitalization is lower for apartments for rent compared to apartments for sale. Capitalization is insignificant or less than 100% for all rental segments. Concerning apartments for sale, capitalization is well above 100% for the low and top price segments. |
| first_indexed | 2024-12-23T05:02:21Z |
| format | Article |
| id | doaj.art-5a25a16c9ed340ae9598691563eb4f49 |
| institution | Directory Open Access Journal |
| issn | 2235-6282 |
| language | English |
| last_indexed | 2024-12-23T05:02:21Z |
| publishDate | 2017-07-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Swiss Journal of Economics and Statistics |
| spelling | doaj.art-5a25a16c9ed340ae9598691563eb4f492022-12-21T17:59:12ZengSpringerOpenSwiss Journal of Economics and Statistics2235-62822017-07-01153322725910.1007/BF03399508Heterogeneity in Income Tax Capitalization: Evidence from the Swiss Housing MarketMario Morger0Centre for Labour and Social Policy Studies BASSSummary There is evidence that taxes capitalize into housing prices, but great uncertainty about the magnitude of income tax capitalization. One explanation why empirical evidence is unclear may stem from the fact that capitalization is something personal, depending on income, mobility, and on the individual tax burden of the bidding households. Therefore, income tax capitalization may theoretically differ substantially between different housing price segments. Results obtained from the analysis of a large Swiss dataset suggest that capitalization is lower for apartments for rent compared to apartments for sale. Capitalization is insignificant or less than 100% for all rental segments. Concerning apartments for sale, capitalization is well above 100% for the low and top price segments.http://link.springer.com/article/10.1007/BF03399508housing pricesincome tax capitalizationsegregation |
| spellingShingle | Mario Morger Heterogeneity in Income Tax Capitalization: Evidence from the Swiss Housing Market Swiss Journal of Economics and Statistics housing prices income tax capitalization segregation |
| title | Heterogeneity in Income Tax Capitalization: Evidence from the Swiss Housing Market |
| title_full | Heterogeneity in Income Tax Capitalization: Evidence from the Swiss Housing Market |
| title_fullStr | Heterogeneity in Income Tax Capitalization: Evidence from the Swiss Housing Market |
| title_full_unstemmed | Heterogeneity in Income Tax Capitalization: Evidence from the Swiss Housing Market |
| title_short | Heterogeneity in Income Tax Capitalization: Evidence from the Swiss Housing Market |
| title_sort | heterogeneity in income tax capitalization evidence from the swiss housing market |
| topic | housing prices income tax capitalization segregation |
| url | http://link.springer.com/article/10.1007/BF03399508 |
| work_keys_str_mv | AT mariomorger heterogeneityinincometaxcapitalizationevidencefromtheswisshousingmarket |