Tax avoidance and inequality in the real estate market
Speaker:Zhao Bo
Host:Lin Jianhao, Professor, Lingnan College
Time and Date:14:30, Nov. 27, 2023
Venue:Chen Rongjie Lecture Hall, Lingnan Hall (203)
Language: English + Chinese
Abstract:
This paper studies tax avoidance behaviors within the housing market and elucidates the implications of lifecycle inequality. Utilizing transaction-level data, we uncover several findings. First, the incidence of housing taxation is entirely borne by the buyers. Second, the absence of a verified transaction price creates an opportunity for buyers to under-report the value of their homes. Third, such under-reporting leads to tightened borrowing constraints for households, as the reported collateral value becomes less than the actual market price. Fourth, younger buyers are disproportionately disadvantaged due to more stringent liquidity constraints. To comprehensively understand these dynamics, we built a lifecycle model that characterizes the influence of taxation on housing choices and intergenerational inequality. The model is employed to assess the welfare implications of various policy scenarios.
Biography:
Research Areas
Quantitative Macroeconomics, Labor Economics, Chinese Economy, Housing Economics
Education Backgroud
PhD in Economics, University of Oslo, Norway 2008-2012
Master of Economics, School of Economics, Fudan University, 2007-2009
Bachelor of Information and Computing Science, School of Mathematics, Fudan University, 2001-2005
Work/Visit Experience
2021 - , Tenured Associate Professor of Economics, National School of Development, Peking University
2012 - 2021, Assistant Professor of Economics, National School of Development, Peking University
2009 - 2011, Visiting Scholar of Minnesota Research Department of Federal Reserve and University of Minnesota