Hilber, Christian A. L. 
ORCID: 0000-0002-1352-495X
(2017)
The economic implications of house price capitalization: a synthesis.
Real Estate Economics, 45 (2).
pp. 301-339.
ISSN 1080-8620
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Abstract
In this article I argue that the extent to which fiscal variables are capitalized into house prices has important economic implications. I synthesize an emerging literature that explores the conditions under which public and private investments and intergovernmental transfers are capitalized into local house prices and the broader implications of such capitalization. The main insights are: (i) House price capitalization is more pronounced in locations with strict regulatory and geographical supply constraints; (ii) capitalization can – under certain conditions – induce the provision of durable local public goods and club goods; and (iii) capitalization effects – which are habitually ignored by policy makers – have important adverse consequences for a wide range of policies such as intergovernmental aid or the mortgage interest deduction.
| Item Type: | Article |
|---|---|
| Official URL: | https://www.areuea.org/publications/ree/ |
| Additional Information: | © 2015 American Real Estate and Urban Economics Association |
| Divisions: | Geography & Environment Spatial Economics Research Centre |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HN Social history and conditions. Social problems. Social reform H Social Sciences > HT Communities. Classes. Races |
| JEL classification: | D - Microeconomics > D7 - Analysis of Collective Decision-Making > D71 - Social Choice; Clubs; Committees; Associations 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 |
| Date Deposited: | 28 May 2015 09:12 |
| Last Modified: | 05 Apr 2024 23:27 |
| Funders: | Lincoln Institute of Land Policy |
| URI: | http://eprints.lse.ac.uk/id/eprint/62118 |
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