Tax Policies and Housing Prices: An Empirical Analysis
Abstract
This thesis evaluates the effect on housing prices from the abolished wealth tax in 2007 and the
property tax reform from 2008. This is done using a municipality-level panel dataset, covering
all municipalities within Sweden from 2005-2010. In order to estimate if the reforms have
increased the prices, a Difference-in-Difference approach is used, using both house prices and
apartment prices as an outcome variable. From the theoretical framework, one can expect both
reforms to positively affect house and apartment prices. Using house prices as the outcome
variable, I find a positive effect in the graphical analysis, and in the regression models. This
thesis finds no effects on prices using apartment prices as the outcome variable. Furthermore, I
test if the high-income municipalities have benefited more from the reforms. I do not find
evidence that high-income municipalities have benefited more from the reforms. This thesis
provides a better understanding of how the tax reforms introduced in 2007 and 2008 affected
the housing market.
Degree
Master 2-years
Other description
MSc in Economics
Collections
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Date
2023-06-29Author
Eriksson, Philip
Keywords
Housing prices
Wealth tax
Property tax
Difference-in-Difference
Series/Report no.
2023:181
Language
eng