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

Guillaume Bérard and Alain Trannoy

Economie et Statistique / Economics and Statistics, 2018, issue 500-501-502, 179-200

Abstract: [eng] This paper estimates the effects of an increase in the share of the real estate transfer taxes (RETT) going to the French départements from 3.80% to 4.50%. Not all the départements voted the RETT increase on the same date, which is the starting point of a natural experiment. Using a difference-in-differences 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.

JEL-codes: H71 R21 R31 R51 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: 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:nse:ecosta:ecostat_2018_500-501-502_10

DOI: 10.24187/ecostat.2018.500t.1951

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