This Website uses cookies. By using this website you are agreeing to our use of cookies and to the terms and conditions listed in our data protection policy. Read more

Journal of Public Economics

Capital gains taxation and residential mobility in Sweden

Scientific Article in English
Reference
Lundborg, Per and Per Skedinger (1998). “Capital gains taxation and residential mobility in Sweden”. Journal of Public Economics 67(3), 399–419. doi.org/10.1016/S0047-2727(97)00070-4

Authors
Per Lundborg, Per Skedinger

Theoretical studies have shown that capital gains taxes in the housing market may create lock-in effects, but, so far, no empirical evidence has been presented regarding the size of these effects. For a panel of Swedish house owners in 1984–1990, we show that lock-in effects only appear for households with income reductions; the size of these lock-in effects crucially depends on the magnitude of the income loss. The theoretical model and features of the Swedish tax system imply that lock-in effects depend on the degree of mismatch in the current residence and whether the households buy up or buy down.
Per Skedinger

+46 (0)8 665 4553
+46 (0)70 486 0389
per.skedinger@ifn.se