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 e orts 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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