Paper #1645

Títol:

Transaction-tax evasion in the housing market

Autors:

José Garcia Montalvo, Amedeo Piolatto i Josep M. Raya

Data:

Març 2019

Resum:

We model the behaviour of a buyer trying to evade the real estate transfer tax. We identify over-appraisal as a key, easily-observable element that is inversely related with tax evasion. We conclude that the tax authority could focus auditing eorts on low-appraisal transactions. We include `behavioural'components (shame and stigma) allowing to introduce buyers'(education) and societal (social capital) characteristics that explain individual and idiosyncratic variations.Our empirical analysis conrms the predictions using a unique database, where we directly observe: real payment, value declared to the authority,appraisal, buyers' educational level and local levels of corruption and trust.

Paraules clau:

transfer tax, tax evasion, second-hand housing market, overappraisal, Loan-To-Value, corruption, social capital, stigma, shame, education

Codis JEL:

G21, H26, R21

Àrea de Recerca:

Estadística, Econometria i Mètodes Quantitatius

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