Floorspace price discontinuities and taxation in cross-border commuting areas

Raian Kudashev () and Pierre M. Picard ()
Additional contact information
Raian Kudashev: DEM, Université du Luxembourg
Pierre M. Picard: DEM, Université du Luxembourg

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: Cross-border housing markets have become more prevalent in Europe since the establishment of the European Union. Using data from the functional urban area of Luxembourg, we document significant floorspace price discontinuities at the borders of Luxembourg with Belgium, France, and Germany. Employing a quantitative spatial urban model and spatial regression discontinuity techniques, we show that differences in tax rates and tax importation account for 9% and 17% of the observed price jump, respectively. The remaining price discrepancy is explained by differences in productivity and amenities.

Keywords: Tax; cross-border employment; land rents; quantitative urban economics. (search for similar items in EconPapers)
JEL-codes: H73 R13 R14 R23 R31 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hdl.handle.net/10993/66030 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:25-16

Access Statistics for this paper

More papers in DEM Discussion Paper Series from Department of Economics at the University of Luxembourg Contact information at EDIRC.
Bibliographic data for series maintained by Marina Legrand ().