Can Property Taxes Reduce House Price Volatility? Evidence from U.S. Regions
IMF Working Papers, November 10, 2016
Source details
- Canonical URL
- Can Property Taxes Reduce House Price Volatility? Evidence from U.S. Regions
Other formats
Bibliographic details
- Authors: Tigran Poghosyan
- Published: November 10, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475552799.001
Data and methodology
- Novel dataset on effective property tax rates in U.S. states and metropolitan statistical areas (MSAs) over the 2005–2014 period.
- Econometric analysis linking effective property tax rates to measures of house price volatility.
- Results tested across different measures of house price volatility, estimation methodologies, and additional controls for housing demand and supply.
Key findings
- Property tax rates have a negative impact on house price volatility.
- The impact is causal: increases in property tax rates lead to a reduction in house price volatility.
- Results are robust to:
- different measures of house price volatility;
- different estimation methodologies;
- additional controls for housing demand and supply.
Policy implications
- Property taxation could be used as an important tool to dampen house price volatility.
- The outcomes of the analysis have important policy implications for tax policy and housing market stabilization.
Publication and metadata
- Author: Tigran Poghosyan
- Date: November 10, 2016
- Series: Working Paper No. 2016/216
- Volume: 2016
- Issue: 216
- Pages: 26
- DOI: https://doi.org/10.5089/9781475552799.001
- Stock No: WPIEA2016216
- ISBN: 9781475552799
- ISSN: 1018-5941
Source: IMF Working Papers, "Can Property Taxes Reduce House Price Volatility? Evidence from U.S. Regions", Tigran Poghosyan, November 10, 2016.
Content in this bundle
- Can Property Taxes Reduce House Price Volatility? Evidence from U.S. Regions