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House prices have increased faster than average income in many countries over the last decade, raising concerns on the affordability of housing. We study the impact of transaction taxes on the real estate market and the effectiveness of tax subsidies to make housing more affordable. We show how...
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This paper documents effects of a homeownership subsidy's full repeal on the urban-rural residential location choice …-Differences frameworks, I exploit the 2005 repeal of Germany's lump-sum direct homeownership subsidy "Eigenheimzulage" on changes in this … distribution across space. The results indicate that repealing subsidies to homeownership reverses subsidy-induced population flows …
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-scale micro data set on German house prices, I exploit the introduction of a new subsidy scheme in the state of Bavaria. My … by about 3.4% more in Bavarian border regions. This is consistent with a full capitalization of the subsidy. No effect is … found for apartments, whose purchasers seldom qualify for the subsidy. A heterogeneity analysis confirms that the price …
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rent for the cities that received varying subsidy rates. The empirical results indicate that subsidies to homeownership …
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