Hilber, Christian A. L. and Lyytikainen, Teemu
(2015)
Transfer taxes and household mobility: distortion on the housing or labour market.
SERC discussion papers (SERCDP0187).
Spatial Economics Research Centre, London, UK.
Abstract
We estimate the effect of the UK Stamp Duty Land Tax (SDLT) – a transfer tax on the purchase price of property or land – on different types of household mobility using micro data. Exploiting a discontinuity in the tax schedule, we isolate the impact of the tax from other determinants of mobility. We compare homeowners with self-assessed house values on either sides of a cut-off value where the tax rate jumps from 1 to 3 percent. We find that a higher SDLT has a strong negative impact on housing-related and short distance moves but does not adversely affect job-induced or long distance mobility. our results suggest that transfer taxes may mainly distort housing rather than labor markets.
| Item Type: |
Monograph
(Discussion Paper)
|
| Official URL: |
http://www.spatialeconomics.ac.uk/ |
| Additional Information: |
© 2015 The Authors |
| Divisions: |
Spatial Economics Research Centre |
| Subjects: |
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HJ Public Finance |
| JEL classification: |
D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior; Transaction Costs; Property Rights
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency; Optimal Taxation
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H27 - Other Sources of Revenue
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers
R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand
R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R31 - Housing Supply and Markets
R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R38 - Government Policies; Regulatory Policies |
| Date Deposited: |
15 Jan 2016 13:49 |
| Last Modified: |
15 Sep 2023 23:37 |
| Funders: |
Economic and Social Research Council, Academy of Finland |
| URI: |
http://eprints.lse.ac.uk/id/eprint/65022 |
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