The incidence of transaction taxes: Evidence from a stamp duty holiday

Surico, P, Besley, T and Meads, N (2014) The incidence of transaction taxes: Evidence from a stamp duty holiday. Journal of Public Economics, 119 (Nov.). pp. 61-70. ISSN 0047-2727

Abstract

This paper exploits the 2008-09 stamp duty holiday in the United Kingdom to estimate the incidence of a transaction tax on housing. The average reduction in the after-tax sale price is found to be around £900 against the backdrop of an average tax reduction of about £1500. While we estimate an increase in transactions of properties affected by the tax holiday around 8%, most of this effect appears to have reversed rapidly after the policy was withdrawn, suggesting mostly a short-term retiming of transactions. The findings are calibrated to a simple bargaining model to show they imply that about sixty percent of the surplus generated by the holiday accrued to buyers.

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Item Type: Article
Subject Areas: Economics
Additional Information: © 2014 Elsevier B.V.
Date Deposited: 02 Mar 2016 18:51
Last Modified: 24 Apr 2019 11:00
URI: http://lbsresearch.london.edu/id/eprint/165
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