The impact of the 2014 increase in the real estate transfer taxes on the French housing market

Guillaume Bérard and Alain Trannoy

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Abstract: This paper estimates the effects of an increase in the share of the real estate transfer taxes (RETT) rates going to the French départements from 3.80% to 4.50%. Not all the départe-ments voted the RETT increase on the same date, which is the starting point of a natural experiment. Using a difference-indifferences design, we estimate two main effects. (1) An anticipation effect, one month before the implementation of the reform, in order to avoid the RETT increase. (2) A retention effect in the post-reform period. In the end, the net effect (retention minus anticipation) corresponds to an average drop in transactions of around 6% over the first three months after the reform, that is, approximately 15,000 transactions lost at national level. If we find a short term effect of the reform, we do not find evidence of a medium-or long-term effect.

Keywords: local government; real estate market; transfer taxes; natural experiment (search for similar items in EconPapers)
Date: 2018-10-29
New Economics Papers: this item is included in nep-ure
Note: View the original document on HAL open archive server: https://hal.science/hal-01976524
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Citations: View citations in EconPapers (6)

Published in Economie et Statistique / Economics and Statistics, 2018, 500-501-502, pp.179-200. ⟨10.24187/ecostat.2018.500t.1951⟩

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Journal Article: The impact of the 2014 increase in the real estate transfer taxes on the French housing market (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01976524

DOI: 10.24187/ecostat.2018.500t.1951

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