Capital Gains Taxation and Residential Mobility in Sweden
Per Lundborg and
Per Skedinger ()
No 446, Working Paper Series from Research Institute of Industrial Economics
Theoretical studies have shown that capital gains taxes in the housing market may create lock-in effects but so far no empirical evidence has been presented regarding the size of these effects. For a panel of Swedish house owners in 1984-1990, we show that lock-in effects only appear for households with income reductions; the size of these lock-in effects crucially depends on the magnitude of the income loss. The theoretical model and features of the Swedish tax system imply that lock-in effects depend on the degree of mismatch in the current residence and whether the households buy up or by down.
Keywords: Capital Gains Taxes; Residential Mobility (search for similar items in EconPapers)
JEL-codes: H20 R20 (search for similar items in EconPapers)
Pages: 22 pages
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Journal Article: Capital gains taxation and residential mobility in Sweden (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0446
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