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Housing and Tax Policy: Comment

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  • HAMED GHIAIE
  • JEAN‐FRANÇOIS ROUILLARD

Abstract

Alpanda and Zubairy (2016) examine the effects of permanent changes to four types of housing‐related tax policies in the context of a multiagent dynamic general equilibrium (DGE) model. They find long‐run tax multipliers that range from −2.21 to −1.53. However, we find an error in their codes that has a significant impact on the size of these multipliers. We correct their error and resimulate their model. The long‐run multipliers we find are reduced almost in half—they now range from −1.25 to −0.84. We also compute short‐run multipliers at a 20‐quarter horizon and find much lower multipliers, ranging between −0.14 and −0.02.

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  • Hamed Ghiaie & Jean‐François Rouillard, 2021. "Housing and Tax Policy: Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 53(8), pages 2215-2219, December.
    • Handle: RePEc:wly:jmoncb:v:53:y:2021:i:8:p:2215-2219
    DOI: 10.1111/jmcb.12817
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    References listed on IDEAS

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    1. Matteo Iacoviello, 2005. "House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle," American Economic Review, American Economic Association, vol. 95(3), pages 739-764, June.
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