Effects of the Swedish 1983-85 Tax Reform on the Demand for Owner-Occupied Housing: A Microsimulation Approach

The effects of the Swedish 1983-85 tax reform are analyzed with respect to the housing market. A microsimulation model is used which takes into account the household's tenure choice (owning vs. renting) as well as the quantity demanded conditional on the tenure choice. The reform consists of a...

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Veröffentlicht in:The Scandinavian journal of economics 1985-01, Vol.87 (4), p.625-646
Hauptverfasser: Brownstone, David, Englund, Peter, Persson, Mats
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container_title The Scandinavian journal of economics
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creator Brownstone, David
Englund, Peter
Persson, Mats
description The effects of the Swedish 1983-85 tax reform are analyzed with respect to the housing market. A microsimulation model is used which takes into account the household's tenure choice (owning vs. renting) as well as the quantity demanded conditional on the tenure choice. The reform consists of a reduction in marginal tax rates and limitations on the deductibility of mortgage interest. The simulations show that this will cause a general reduction in demand for owner-occupied houses. On a disaggregated level, there will be an increase in the demand for small and medium-sized houses, while the demand for large units will fall sharply.
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1467-9442
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source RePEc; Business Source Complete; JSTOR Archive Collection A-Z Listing
subjects Demand
Dwelling value
Econometrics
Economic models
Estimated taxes
Home ownership
Housing
Housing demand
Housing market
Impacts
Income taxes
Interest costs
Marginal tax rate
Microeconomics
Modeling
Simulation
Tax deductions
Tax rates
Tax reform
Taxation economics
title Effects of the Swedish 1983-85 Tax Reform on the Demand for Owner-Occupied Housing: A Microsimulation Approach
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