Transaction-tax evasion in the housing market

José Garcia Montalvo (), Amedeo Piolatto and Josep M. Raya ()
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José Garcia Montalvo: https://www.upf.edu/web/econ/faculty/-/asset_publisher/6aWmmXf28uXT/persona/id/3418887
Josep M. Raya: https://www.upf.edu/web/josepmaria_raya

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We model the behaviour of a buyer trying to evade the real estate transfer tax. We identify over-appraisal as a key, easily-observable element that is inversely related with tax evasion. We conclude that the tax authority could focus auditing e orts on low-appraisal transactions. We include `behavioural'components (shame and stigma) allowing to introduce buyers'(education) and societal (social capital) characteristics that explain individual and idiosyncratic variations.Our empirical analysis con rms the predictions using a unique database, where we directly observe: real payment, value declared to the authority,appraisal, buyers' educational level and local levels of corruption and trust.

Keywords: transfer tax; tax evasion; second-hand housing market; overappraisal; Loan-To-Value; corruption; social capital; stigma; shame; education (search for similar items in EconPapers)
JEL-codes: G21 H26 R21 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-acc, nep-eur, nep-pbe, nep-soc and nep-ure
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Related works:
Journal Article: Transaction-tax evasion in the housing market (2020)
Working Paper: Transaction-tax Evasion in the Housing Market (2019)
Working Paper: Transaction-tax evasion in the housing market (2019)
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