Besley, Timothy, Meads, Neil and Surico, Paolo (2014) The incidence of transaction taxes: evidence from a stamp duty holiday. Journal of Public Economics, 119. pp. 61-70. ISSN 0047-2727
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Abstract
This paper exploits the 2008–09 stamp duty holiday in the United Kingdom to estimate the incidence of a transaction tax on housing. The average reduction in the after-tax sale price is found to be around £900 against the backdrop of an average tax reduction of about £1500. While we estimate an increase in transactions of properties affected by the tax holiday around 8%, most of this effect appears to have reversed rapidly after the policy was withdrawn, suggesting mostly a short-term retiming of transactions. The findings are calibrated to a simple bargaining model to show they imply that about sixty percent of the surplus generated by the holiday accrued to buyers.
| Item Type: | Article |
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| Official URL: | http://www.journals.elsevier.com/journal-of-public... |
| Additional Information: | © 2014 Elsevier B.V. |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HJ Public Finance J Political Science > JN Political institutions (Europe) > JN101 Great Britain |
| JEL classification: | H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H22 - Incidence R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R32 - Other Production and Pricing Analysis |
| Date Deposited: | 07 Oct 2014 11:15 |
| Last Modified: | 24 Apr 2024 07:30 |
| Projects: | ERC Starting Independent Grant – Agreement 263429 |
| Funders: | European Research Council |
| URI: | http://eprints.lse.ac.uk/id/eprint/59637 |
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