Income Taxes, Sorting and the Costs of Housing: Evidence from Municipal Boundaries in Switzerland

• 成果类型: Article
• 署名作者: Basten, Christoph; von Ehrlich, Maximilian; Lassmann, Andrea
• 署名单位: University of Bern; Swiss Federal Institutes of Technology Domain; ETH Zurich
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12489
• 发表日期: 2017
• 页码: 653-687
• 关键词: taxation; prices

摘要

We provide novel evidence on the role of income taxes for housing rents and spatial sorting. Drawing on comprehensive micro-level data, we estimate the responsiveness of households to tax differentials across municipal boundaries. Correcting for unobservable location characteristics and isolating the residential sorting component, we identify an income tax elasticity of rents of about -0.27 to -0.35. In line with non-homothetic preferences, we find that the marginal willingness to pay for lower taxes increases with income. Counterfactual calculations show how an homogenisation of taxes acrossjurisdictions and an increase in variation of taxes affect rents and income stratification across space.