INVESTMENT HOUSING TAX CONCESSIONS AND WELFARE: A QUANTITATIVE STUDY FOR AUSTRALIA

• 成果类型: Article
• 署名作者: Cho, Yunho; Li, Shuyun May; Uren, Lawrence
• 署名单位: University of Jinan; University of Melbourne
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12673
• 发表日期: 2024
• 页码: 781-816
• 关键词: taxation; prices; MARKET; POLICY

摘要

This article builds a general equilibrium overlapping generations (OLG) model with heterogeneous agents to study the welfare implications of investment housing tax concessions in Australia. Removing these concessions substantially reduces the landlord rate and the use of debt. There is a steady-state welfare gain equivalent to a 0.13% increase in lifetime consumption if the additional tax revenue from removing the concessions is used to finance a lump-sum transfer to all households. That welfare gain rises to 1.45% if the extra tax revenue is used to provide a transfer to the housing-poor in the form of rental assistance. Over the transition, around 70% of existing households experience a welfare gain and there are important distributional effects in both cases.