Proposition 13: An Equilibrium Analysis
Ayse Imrohoroglu (),
Kyle Matoba and
American Economic Journal: Macroeconomics, 2018, vol. 10, issue 2, 24-51
There are many federal, state, and local laws that distort housing decisions and prices. However, it is often difficult to tease out the quantitative impact of such policies. In this paper, we examine the implications of one of the most significant tax changes initiated by voters in the United States on house prices, housing turnover, and household welfare. In 1978 California passed Proposition 13, which lowered property tax rates and restricted future property tax increases. We find that the introduction of Proposition 13 leads to a 15 percent increase in house prices and a 3.3 percent decrease in the moving rates. The elimination of Proposition 13, however, leads to modest changes in house prices and mobility but sizable welfare gains.
JEL-codes: E13 G21 H71 R21 R31 (search for similar items in EconPapers)
Note: DOI: 10.1257/mac.20160327
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... 0GyrzSrg6vXqTB3nw1L6 (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... WvEsSfmydjfbVICl7yGW (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Proposition 13: An Equilibrium Analysis (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aejmac:v:10:y:2018:i:2:p:24-51
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Journal: Macroeconomics is currently edited by Simon Gilchrist
More articles in American Economic Journal: Macroeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().