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Taxing Vacant Dwellings: Can fiscal policy reduce vacancy?

Author

Listed:
  • Segú, Mariona
  • Vignolles, Benjamin
Abstract
We provide the first evaluation of a tax on vacant housing. This instrument has been used increasingly by governments in order to reduce vacancy in large and dense cities with tight housing markets. We use the quasi-experimental setting of the implementation of a tax on vacancy in France in 1999 to identify the causal direct effect of the tax on the vacancy rate. Exploiting an exhaustive fiscal data-set, which contains information on every dwelling in France from 1995 to 2013, we implement a Difference-in-Difference approach combined with a Propensity Score Matching strategy. Our results suggest that the tax was responsible of a 13% decrease in vacancy rates between 1997 and 2001. This impact is twice as high for municipalities with an initially high level of vacancy. Our results also suggest that most of the vacant dwellings moved to primary residences.

Suggested Citation

  • Segú, Mariona & Vignolles, Benjamin, 2018. "Taxing Vacant Dwellings: Can fiscal policy reduce vacancy?," MPRA Paper 85508, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:85508
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    References listed on IDEAS

    as
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    Cited by:

    1. Albert Solé-Ollé & Elisabet Viladecans-Marsal & José Mª Durán-Cabré & Thomas Davidoff & Mariona Segú, 2018. "Tourism and Gentrification in Global Cities: Could Fiscal Policy be Useful? / Turismo y gentrificación en ciudades globales: ¿podría ser útil la política fiscal? / Turisme i gentrificació en ciutats g," IEB Reports ieb_report_2_2018, Institut d'Economia de Barcelona (IEB).
    2. Elisabeth Arnold & Katharina Falkner & Margit Schratzenstaller & Franz Sinabell, 2023. "Auswirkungen des Flächenverbrauchs für die Versorgungssicherheit und steuerliche Instrumente zu dessen Eindämmung," WIFO Studies, WIFO, number 71122.

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    More about this item

    Keywords

    Keywords: Housing; Vacancy Rate; Taxes; Impact Evaluation;
    All these keywords.

    JEL classification:

    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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