Land, Wealth, and Taxation

Terre, richesse et fiscalité

Roberto Brunetti, Carl Gaigne and Fabien Moizeau
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Roberto Brunetti: GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique, CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique
Fabien Moizeau: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: We examine the role of land in wealth dynamics, and its consequences on efficiency and inequality by focusing on the interplay among agents' bidding for location, mortgage market imperfections, and inheritance. We develop a model in which altruistic agents leave to their heirs a financial bequest and their housing wealth. The borrowing constraint generates a housing return premium and spatial wealth sorting, which translate into persistent inequality. Since altruism and the borrowing constraint distort land price formation, we discuss different corrective tax schedules. Land taxation cannot be disconnected from inheritance taxation, and must be levied on the inheriting generation.

Keywords: Mortgage market imperfections; Spatial sorting; Wealth distribution; Wealth taxation; Efficiency; Imperfections du marché du crédit immobilier; Ségrégation spatiale; Inégalité; Fiscalité de la richesse; Efficacité (search for similar items in EconPapers)
Date: 2024-12-13
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04836964v1
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Related works:
Working Paper: Land, Wealth, and Taxation (2024)
Working Paper: Land, Wealth, and Taxation (2023)
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