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SSRN Electronic Journal
Article . 2009 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2009
Data sources: EconStor
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Real Estate Prices and the Importance of Bequest Taxation

Authors: Giorgio Bellettini; Filippo Taddei;

Real Estate Prices and the Importance of Bequest Taxation

Abstract

Taxation of bequests and donations is an important determinant of real estate prices. We show that, ceteris paribus, a decrease in taxes on inter vivos donations and bequests brings about an increase in real estate prices. We provide a general equilibrium rationalization in the context of OLG economies featuring intergenerational altruism. This has relevant policy implications. We test the predictions of our theory employing a unique policy shock: the abolition of bequest and donation taxation that took place in Italy in 2001. Considering this policy shift provides the first evidence that a drastic reduction in bequest and donation taxation significantly increased real estate prices. Our estimates suggest that the 2001 abolition of taxation on bequests and donations alone led to an appreciation of residential real estate in excess of 10%.

Keywords

donations, real estate prices, donations, bequest taxation, Immobilienpreis, Overlapping Generations, bequest tax; donations; real estate, ddc:330, Italien, Steuerwirkung, Allgemeines Gleichgewicht, bequest taxation, Privater Transfer, Real estate prices, H30, E62, Erbschaftsteuer, Theorie, jel: jel:E62, jel: jel:E60, jel: jel:E65, jel: jel:H30, jel: jel:H24

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    popularity
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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
bronze