The effects of taxing and subsidizing housing

This project aims to shed light on the determinants of housing decisions of households and identify the impact of policy interventions by central and local governments on housing market outcomes.

The project includes five sub-projects, which analyze 1) the impact of housing allowance for low income households on rents and housing consumption, 2) capitalization of local property taxes into housing prices, 3) the effect of real estate transfer taxes on households’ financial portfolios and housing consumption profiles, 4) the role of social networks in the residential area and workplace for the choice of place of work and place of residence, and 5) the incentive effects of the equalization system of local tax base.

The project is funded by: The academy of Finland

Partners: London School of Economics, Aalto university

Responsible researcher: Teemu Lyytikäinen, [email protected], +358 295 519 431