Volume 10, Issue 37 (10-2019)
jemr 2019, 10(37): 139-175 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Izadkhasti H, Arab Mazar A A, Jalali A. Analysis the Effect of Optimal Tax on Return of Housing Capital in the Dynamic Optimization Model: Case Study of Iranian Economy. jemr 2019; 10 (37) :139-175
URL: http://jemr.khu.ac.ir/article-1-1740-en.html
URL: http://jemr.khu.ac.ir/article-1-1740-en.html
1- Shahid Beheshti University , h_izadkhasti@sbu.ac.ir
2- Shahid Beheshti University
2- Shahid Beheshti University
Abstract: (4121 Views)
Speculative demand in the land and housing market has a fundamental role in raising the price of land and housing and causing a diversion and invasion of the housing sector with the aim of profit. The government, by imposing a tax on rent of land and housing return, seeks to control speculation, allocate the land resources and urban housing and make money to build the urban infrastructure. In this study, optimal taxation on the return of housing capital is analyzed in the framework of a dynamic optimization model in Iran. Then, the calibration and sensitivity analysis of the macro variables was done to change the tax rate on housing capital return. Finally, using the GAMS software, the optimal path of macro variables was simulated in different scenarios during the period (2016-2040). In steady state, the results of the sensitivity analysis of macro variables indicate that by increasing the tax rate on the return of housing capital from zero to 25%, and decreasing the tax rate on the return of business capital from 25% to zero, increased the level of business capital per capita, production per capita and consumption per capita by 50.62%, 13.47% and 25.27% respectively, and decreased the level of housing capital per capita by 31.5%. Also, the results of the simulation indicate that the imposing tax on the return of housing capital at a rate of 4% compared to the current state of the economy, has led to upward the optimal path of business capital per capita, production per capita and business capital per capita and gone down housing capital in the long run during the transition period.
Keywords: Housing Capital Taxation, Business Capital Taxation, Dynamic General Equilibrium Model, Iran
Type of Study: Applicable |
Subject:
بخش عمومی
Received: 2018/12/10 | Accepted: 2019/08/26 | Published: 2019/12/24
Received: 2018/12/10 | Accepted: 2019/08/26 | Published: 2019/12/24
References
1. Abdi, M.R. and Askari Azad, H., (2008). The Application of Taxes to Capital Investments in the Reconstruction of the Fluctuations of My Fluctuations, Monthly Evaluation Issue and Economic Policies, No. 81 and 82: 41-67. {In Persian}
2. Amini, A., and Haji Muhammad. N., (2004). Estimating the Time Series of Capital Inventory in the Iranian Economy during the Period of 2002-2009, Journal of Planning and Budgeting, 2(2): 53-86. {In Persian}
3. Antipa, P., and Schalck, Ch., (2009). Impact of Fiscal Policy on Residential Investment in France, Bank of France Working Papers, No. 27. [DOI:10.2139/ssrn.1622616]
4. Bakhshi Dastgerdi, R., and Abolhasani Toroghi, F., (2010). Investigating Land Tax Status in the Iranian Economy: A Computable Dynamic General Equilibrium Approach, Iranian Economic Research Quarterly, 15(44): 66-35. {In Persian}
5. Behbodi, D., and Montazeri Shour kachali, J., (2010). Investigating the Total Factor Productivity in Iran in the Growth Accounting Framework (1964-2009), Economic Growth and Development Research, No. 3: 70-49. {In Persian}
6. Bogataj, D., Mc Donnell, D.R., and Bogataj, M., (2016). Management, Financing and Taxation of Housing Stock in the Shrinking Cities of Aging Societies, Journal of Production Economics, 181:1-13. [DOI:10.1016/j.ijpe.2016.08.017]
7. Bourassa, S, C., (1990). Land Value Taxation and Housing Development: Effects of Property Tax Reform in Three Types of Cities. American Journal of Economics and Sociology 49:101-111. [DOI:10.1111/j.1536-7150.1990.tb02264.x]
8. Chamley, Ch., (1986). Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives. Econometrica, 54:607-622. [DOI:10.2307/1911310]
9. Coleman II, W. J., (2000). Welfare and optimum dynamic taxation of consumption and income. Journal of Public Economics, 76:1-39. [DOI:10.1016/S0047-2727(99)00043-2]
10. Eerola, E. Maattanen, N., (2005). The Optimal Tax Treatment of Housing Capital in the Neoclassical Growth Model. Bank of Finland Research Discussion Papers 10. [DOI:10.2139/ssrn.872709]
11. Eerola, E. Maattanen, N., (2010). The Optimal Tax Treatment of Housing Capital in the Neoclassical Growth Model.
12. Eerola,E., Harjunen,O., Lyytikainen, T., and Saarimaa, T., (2018). Effects of Real Estate Transfer Taxes: Evidence from a Natural Experiment. Publication Series of the Governments Analysis, Assessment and Research Activities.
13. Gholizadeh, A. A., (2014). Capital Gains Tax and Housing Price Bubble: A Cross-Country Study, Iran. Econ. Rev., 18(1): 1-25.
14. Gholizadeh, A.A. and Amiri, N., (2013). A Look at the Tax System of the World's Housing Sector and a Framework for Tax Reform in the Iranian Housing Sector, Economic Journal: 91-91. {In Persian}
15. Herbert, H. G., (2001). Unlocking Canadian Capital: The Case for Capital Gains, the Fraser Institute.
16. Izadkhasti, H., (2015). Analysis the Impact of Tax on Land and Housing Value in Urban Areas of Isfahan, Research Plan of the National Tax Organization. {In Persian}
17. Izadkhasti, H., (2018). Analyzing the Impact of Taxation on the Real Estate and Housing Sector and Estimating its Potential Capacity in Iran: Emphasizing Challenges and Strategies, Tax Research Quarterly, 41 (89): 1-3-73. {In Persian}
18. Izadkhasti, H., & Arammazar, A., (2016). An Analysis the Effect of Capital Taxation on Allocation of Resources: A Dynamic Equilibrium Model Approach, Iran. Econ. Rev, 20:175-186.
19. Judd, K. L., (1985). Redistributive taxation in a simple perfect foresight model. Journal of Public Economics, 28:59-83. [DOI:10.1016/0047-2727(85)90020-9]
20. Lin, SH., Li, J., Hsieh, J., Huang, X., & Chen, J., (2018). Impact of Property Tax on Housing- Market Disequilibrium in Different Regions: Evidence from Taiwan for the Period 1982-2016. Sustainability, MDPI, Open Access Journal, 10(11): 1-18. [DOI:10.3390/su10114318]
21. -Moore, S., and Silvia, J., (1995). The ABCs of the Capital Gains Tax, CATO Institute, October 4, Policy Analysis,No. 242.
22. Nechyba, T. J., (1998). Replacing Capital Taxes with Land Taxes: Efficiency and Distributional Implications with an Application to the United States Economy. In Land Value Taxation: Can It Will Work Today? Ed. Netzer Dick. Cambridge (MA): Lincoln Institute of Land Policy.
23. Nechyba, T. J., (2001). Prospects for Land Rent Taxes in State and Local Tax Reforms. Duke University and NBER.
24. Office of Economic Studies, Majlis Research Center. (2008). a Comparative Study of Land and Housing Tax Policies in Countries and Considerations for Their Implementation in Iran. Subject Code 220. {In Persian}
25. Office of Infrastructure Studies. (2006). Housing Economic Policies: The Musts and Don'ts, Subject Code 250. {In Persian}
26. Saarimaa, T., (2011). Imputed Rental Income, Taxation and Distribution in Finland. Urban Studies, 48(8):1695-1714. [DOI:10.1177/0042098010377474]
27. Sameti, M., Samadi, S. and Sharifi, M., (2015). Capital Income Tax and its Impact on Housing Prices (Comparative Study of Iran and Member States), Tax Research Journal, No. 26: 49-64. {In Persian}
28. Shahnazi, R., and Nasir Abadi, S., (2015). Determination of Optimal Tax on Housing Capital Compared to Non-Housing Capital, Economic Modeling Quarterly, Ninth Year, 2(30): 1-23. {In Persian}
Send email to the article author
| Rights and permissions | |
 | This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |
