The Impact of the ‘Scellier’ Income Tax Relief on Building Land Prices in France

Pierre-Henri Bono (ph.bono@sciencespo.fr) and Alain Trannoy
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Pierre-Henri Bono: CEVIPOF - Centre de recherches politiques de Sciences Po (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique

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Abstract: This study assesses the impact of a tax incentive scheme to boost private rental investment in force in France from 2009 to 2012, called the "Scellier scheme" (after the name of the minister who promoted it), on changes in the price of building land. A difference in differences estimation is implemented, drawing on data from the BNDP database covering the period 2004 2010. The definition of the control and treatment groups is based on the boundary between municipalities which are eligible for the Scellier scheme and municipalities which are not. The estimation results suggest that the scheme had an inflationary effect and point to land price capitalisation, with an increase in the price per square metre of around 7 euros in the first year and of 8 to 9 euros over 2009 and 2010, without a significant rise of the phenome¬non in the second year, i.e. an increase of 8% in the first year and of 9 to 10% after two years. The regions where the market was the tightest saw the most rapid price increase, particularly the Mediterranean region.

Keywords: land price; income tax deduction; private rental investment; Scellier scheme (search for similar items in EconPapers)
Date: 2019-07
New Economics Papers: this item is included in nep-eur and nep-ure
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Published in Economie et Statistique / Economics and Statistics, 2019, 507-508, pp.91-114. ⟨10.24187/ecostat.2019.507d.1976⟩

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Journal Article: The Impact of the ‘Scellier’ Income Tax Relief on Building Land Prices in France (2019)
Working Paper: The Impact of the ‘Scellier’ Income Tax Relief on Building Land Prices in France (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02481755

DOI: 10.24187/ecostat.2019.507d.1976

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