Property taxation, housing, and local labor markets: Evidence from German municipalities

Löffler, Max ; Siegloch, Sebastian

Document Type: Working paper
Year of publication: 2018
Place of publication: Mannheim
Edition: Version March 18, 2018
Publication language: English
Institution: School of Law and Economics > Soziale Sicherung (Siegloch 2018-2022)
Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
Subject: 330 Economics
Classification: JEL:
Keywords (English): property taxation , tax incidence , local labor markets , rental housing
Abstract: We analyze the incidence and the welfare implications of property taxation. We suggest a novel theoretical perspective by introducing property taxes in a spatial equilibrium model, where workers and firms are mobile but have location-specific preferences, and where tax revenues finance local public goods. The model predicts that the welfare effects of property taxes depend on four reduced-form elasticities. We estimate these elasticities using an event study design and exploiting the institutional setting of municipal property taxation in Germany with more than 31,000 tax reforms in the years between 1992–2017. Our results imply that renters bear one fifth, firm owners bear about one third, and land owners bear more than 40 percent of the welfare loss of property tax increases.
Additional information: Work in progress. Preliminary and incomplete – do not cite without permission

Dieser Eintrag ist Teil der Universitätsbibliographie.

Metadata export


+ Search Authors in

+ Page Views

Hits per month over past year

Detailed information

You have found an error? Please let us know about your desired correction here: E-Mail

Actions (login required)

Show item Show item