scholarly journals LABOR TAX REDUCTIONS IN EUROPE: THE ROLE OF PROPERTY TAXATION

2020 ◽  
pp. 1-33
Author(s):  
Marcin Bielecki ◽  
Nikolai Stähler
Keyword(s):  
Housing Market ◽  
New Keynesian ◽  
Property Taxes ◽  
Real Economy ◽  
Property Taxation ◽  
Tax Reduction ◽  
Labor Tax ◽  
Stocks And Flows ◽  
Transaction Taxes

We use a New Keynesian DSGE model with search frictions on the housing market to evaluate how financing a labor tax reduction by higher property taxation affects the real economy and welfare. Search on the housing market enables us to explicitly model stocks and flows, which is necessary to differentiate between recurrent property taxes (levied on stocks) and property transaction taxes (levied to flows). We find that using recurrent property taxation as financing instrument outperforms other instruments although all policy measures increase aggregate economy-wide welfare. Our simulations suggest that using property transaction taxation as financing instrument is the least favorable measure.

scholarly journals Labor Tax Reductions in Europe: The Role of Property Taxation

2018 ◽  
Author(s):  
Marcin Bielecki ◽  
Nikolai Stahler
Keyword(s):  
Property Taxation ◽  
Labor Tax

scholarly journals On the Limits of Macroprudential Policy

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Marcin Kolasa
Keyword(s):  
Monetary Policy ◽  
Policy Instruments ◽  
New Keynesian ◽  
Output Volatility ◽  
Macroprudential Policy ◽  
Collateral Constraints ◽  
Keynesian Model ◽  
Additional Stabilization ◽  
The Interest Rate

AbstractThis paper studies how macroprudential policy tools applied to the housing market can complement the interest rate-based monetary policy in achieving one additional stabilization objective, defined as keeping either economic activity or credit at some exogenous (and possibly time-varying) levels. We show analytically in a canonical New Keynesian model with housing and collateral constraints that using the loan-to-value (LTV) ratio, tax on credit or tax on property as additional policy instruments does not resolve the inflation-output volatility tradeoff. Perfect targeting of inflation and credit with monetary and macroprudential policy is possible only if the role of housing debt in the economy is sufficiently small. The identified limits to the considered policies are related to their predominantly intertemporal impact on decisions made by financially constrained agents, making them poor complements to monetary policy, which also operates at an intertemporal margin. These limits can be overcome if macroprudential policy is instead designed such that it sufficiently redistributes income between savers and borrowers.

scholarly journals Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Pen Social Innovation of the Islamic Financial System

2021 ◽  
Vol 7 (2) ◽  
pp. 136
Author(s):  
Mustafa Raza Rabbani ◽  
Abu Bashar ◽  
Nishad Nawaz ◽  
Sitara Karim ◽  
Mahmood Asad Mohd. Ali ◽  
...  
Keyword(s):  
Financial Services ◽  
Open Innovation ◽  
Financial Stability ◽  
Social Innovation ◽  
Global Financial Crisis ◽  
Financial System ◽  
Real Economy ◽  
Business Context ◽  
The World

The purpose of the current study is to investigate the role of the Islamic financial system in recovery post-COVID-19 and the way Fintech can be utilized to combat the economic reverberations created by COVID-19. The global financial crisis of 2008 has established the credentials of the Islamic financial system as a sustainable financial system which can save the long run interests of the average citizens around the world while adding value to the real economy. The basic ethical tenets available in the Islamic financial system make it more suited and readymade to fight the economic aftershocks of a pandemic like COVID-19. The basic principles of ethical Islamic finance have solid connections to financial stability and corporate social responsibility within the wide-reaching business context. With the emergence of Financial technology (Fintech) it has provided a missing impetus to the Islamic financial system to compete on equal ground with its conventional counterpart and prove its mettle. The study uses discourse analysis along with the content analysis to extract content and draw a conclusion. The findings of the study indicate that COVID-19 pandemic has provided the opportunity for the social and open innovation to grow and finance world have turned to open innovation to provide a speedy, timely, reliable, and sustainable solution to the world. The findings of the study provide significant implications for governments and policy makers in efficient application of Fintech and innovative Islamic financial services to fight the economic consequences of the COVID-19 pandemic.

Capital Switching and the Role of Ground Rent: 1 Theoretical Problems

1989 ◽  
Vol 21 (4) ◽  
pp. 445-462 ◽  
Author(s):  
R J King
Keyword(s):  
Social Change ◽  
Housing Market ◽  
Capital Accumulation ◽  
The State ◽  
Social Conditions ◽  
Rent Extraction ◽  
Economic Sectors ◽  
Speculative Investment ◽  
Capital Switching

The flow of both productive and speculative investment into housing relates to the state of capital accumulation in other economic sectors, as hypothesised in the ‘circuits of capital’ argument, but it also relates to the incentive to ‘switch’ investment into and out of housing, and therefore to expectations of ground rent and the (changing) social conditions that enable ground rent extraction. This is the first of three papers in which the relationships involved in these processes are explored. A series of theoretical problems arising from the argument are dealt with, principally relating to its seeming economic determinism and to an inappropriately narrow treatment of crisis and social change. In the subsequent papers, in this journal, these various ideas will be used to reflect on housing market and related social change in Melbourne from the 1930s to the 1980s.

Increasing Access or Widening Choice: The Role of Resold Public-Sector Dwellings in the Housing Market

1992 ◽  
Vol 24 (11) ◽  
pp. 1585-1598 ◽  
Author(s):  
N J Williams ◽  
F E Twine
Keyword(s):  
Public Sector ◽  
Housing Market ◽  
Housing Policy ◽  
Housing Association ◽  
Lower Income ◽  
General Government ◽  
Policy Shift ◽  
Long Term Impact

British housing policy has, since 1979, been dominated by a shift from collectivist to market-oriented strategies. The single most important element of this policy shift has been the sale of public-sector dwellings to sitting tenants. The patterns of such sales have been well documented, but the longer-term effects on the broader housing market are less well understood. This paper is a report of the results of a research project into the resale by purchasing tenants of Scottish Special Housing Association dwellings over the period 1979–90. The findings are placed in the broader context of the general government housing policy aimed at widening the access to owner occupation for lower-income households. The authors conclude that the long-term impact of the sale of public-sector dwellings is more likely to widen choice for existing owners rather than to increase access to owner occupation.

scholarly journals Buyer search and the role of broker in an emerging housing market: A case study of guangzhou

2006 ◽  
Vol 11 (6) ◽  
pp. 675-685 ◽  
Author(s):  
Siqi Zheng ◽  
Hongyu Liu ◽  
Rebecca Lee
Keyword(s):  
Housing Market ◽  
Buyer Search

scholarly journals Does the Interest Rate Form Business Cycle?

2019 ◽  
Vol 4 (1) ◽  
pp. 29-34
Author(s):  
Bijan Bidabad ◽  
Abul Hassan
Keyword(s):  
Interest Rate ◽  
Business Cycle ◽  
Interest Rates ◽  
Banking System ◽  
Real Economy ◽  
Short Term ◽  
The Usa ◽  
Rate Form ◽  
The Interest Rate

Dynamic structural behavior of depositor, bank and borrower and the role of banks in forming business cycle are investigated. We test the hypothesis that does banks behavior make oscillations in the economy through the interest rate. By dichotomizing banking activities into two markets of deposit and loan, we show that these two markets have non-synchronized structures, and this is why the money sector fluctuation starts. As a result, the fluctuation is transmitted to the real economy through saving and investment functions. Empirical results assert that in the USA, the banking system creates fluctuations in the money sector and real economy as well through short-term interest rates

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