The optimal tax treatment of housing capital in the neoclassical growth model

Essi Eerola and Niku Määttänen ()

No 10/2005, Research Discussion Papers from Bank of Finland

Abstract: In a dynamic setting, housing is both an asset and a consumption good. But should it be taxed like other forms of consumption or like other forms of saving? We consider the optimal taxation of the imputed rent from owner housing within a version of the neoclassical growth model. We find that the optimal tax rate on the imputed rent is quite sensitive to the constraints imposed on the other available tax rates. In general, it is not optimal to tax the imputed rent at the same rate as the business capital income.

Keywords: housing; capital taxation; optimal taxation (search for similar items in EconPapers)
JEL-codes: E21 H21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc, nep-dge, nep-pbe, nep-pub and nep-ure
Date: 2005-07-11
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.suomenpankki.fi/en/julkaisut/tutkimukse ... uments/0510netti.pdf (application/pdf)

Related works:
Working Paper: The optimal tax treatment of housing capital in the neoclassical growth model (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhs:bofrdp:2005_010

Access Statistics for this paper

More papers in Research Discussion Papers from Bank of Finland
Address: Bank of Finland, P.O. Box 160, FI-00101 Helsinki, Finland
Contact information at EDIRC.
Series data maintained by Minna Nyman ().