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Taxes and the fundamental value of houses

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  • Madsen, Jakob B.

Abstract

This paper constructs a general equilibrium model of housing prices which can be used to analyze the effects of various taxes on house prices and housing stock. It is shown that taxes have effects on the housing market that are quite different from the effects generated from the conventional user-cost-based models. Empirical estimates for the US show that taxes are highly influential for house prices in the short run as well as in the long run.

Suggested Citation

  • Madsen, Jakob B., 2009. "Taxes and the fundamental value of houses," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 365-376, May.
    • Handle: RePEc:eee:regeco:v:39:y:2009:i:3:p:365-376
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    Cited by:

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    2. Sarah Carrington & Jakob B. Madsen, 2011. "House Prices, Credit and Willingness to Lend," The Economic Record, The Economic Society of Australia, vol. 87(279), pages 537-557, December.
    3. Jacobsen, Rasmus Højbjerg & Jensen, Svend E. Hougaard & Rebbe, Stephanie Koefoed, 2011. "Husholdningsstrukturen i Danmark under forvandling: Betyder det noget for de offentlige udgifter?," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2011(1), pages 109-125.
    4. Frost, Hans & Andersen, Peder & Hoff, Ayoe, 2011. "An Application of Fisheries Economics Theory – 100 years after Warming’s paper: “Rent of Fishing Grounds”," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2011(1), pages 55-84.
    5. Madsen, Jakob B., 2012. "A behavioral model of house prices," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 21-38.
    6. MADSEN, Jakob B, 2018. "Is Inequality Increasing in r-g? The Dynamics of Capital’s Income Share in the UK, 1210-2013," Discussion paper series HIAS-E-70, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    7. Sørensen, Peter Birch, 2011. "Finanskrisen og den økonomiske videnskab," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2011(1), pages 142-157.
    8. Ladenburg, Jacob & Bonnichsen, Ole & Dahlgaard, Jens Olav, 2011. "Testing the Effect of a Short Cheap Talk Script in Choice Experiments," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2011(1), pages 25-54.
    9. Jakob B Madsen, 2011. "A Repayment Model of House Prices," Monash Economics Working Papers 09-11, Monash University, Department of Economics.
    10. Skak, Morten, 2011. "Is there an upward long term trend in Danish real house prices?," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2011(1), pages 85-108.
    11. Bay, Hans, 2011. "Udviklingen i matematik målt i de danske PISA rapporter," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2011(1), pages 126-135.

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