Effect of Socio-Economic Stratification on House Value in Bogotá

Juan Gallego (), Sergio Montoya and Carlos Sepúlveda

No 994, Research Department working papers from CAF Development Bank Of Latinamerica

Abstract: This paper investigates the impact of urban fiscal policies on housing value. We use a focalization system in Bogotá where certain subsidies and taxes are targeted based on a classification of houses according to external conditions and urban surroundings (socioeconomic stratification). We use a regression discontinuity design, and a rich dataset on cadastre appraisal and housing characteristics, to assess whether a higher tax burden affects the property value. Our results suggest that the usual (negative) capitalization effect is compensated by other channels. We show evidence that as stratum increases, investment on the house maintenance improve.

Keywords: Ciudades; Economía; Finanzas públicas; Impuestos; Investigación socioeconómica; Políticas públicas; Vivienda (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:dbl:dblwop:994

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