Impact of a Housing Tax Credit on Local Housing Markets: Evidence from France

Guillaume Chapelle, Benjamin Vignolles and Clara Wolf

Annals of Economics and Statistics, 2018, issue 130, 101-131

Abstract: Housing Tax Credits are a popular tool designed to increase the construction of affordable housing units for low and medium income tenants. Several papers in the US, however, document the lacklustre performance of such programs that represent an important amount of public expenditures. In this paper, we exploit a quasi-natural experiment in France (the removal of the Borloo and Robien policies on part of the territory with the implementation of the Scellier Tax Credit (STC)), to identify the impact of such policies on local housing markets. We find that the removal of these tax credits decelerated house prices and lowered the vacancy rate in new dwellings without reducing the production of new housing units. Finally, the income profile of tenants in new dwellings remained unaffected.

Keywords: Housing Supply; Real Estate Markets; Tax Credit; Subsidies. (search for similar items in EconPapers)
JEL-codes: H2 R31 R38 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (15)

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https://www.jstor.org/stable/10.15609/annaeconstat2009.130.0101 (text/html)

Related works:
Working Paper: Impact of a Housing Tax Credit on Local Housing Markets: Evidence from France (2018)
Working Paper: Impact of a Housing Tax Credit on Local Housing Markets: Evidence from France (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2018:i:130:p:101-131

DOI: 10.15609/annaeconstat2009.130.0101

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