The Impact of Property Tax on Housing Consumption  – An Empirical Study on the UK, the US and Japan

Cong Yu

doi:10.54254/2754-1169/28/20231327

Research Article

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Published on 10 November 2023

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Yu,C. (2023). The Impact of Property Tax on Housing Consumption – An Empirical Study on the UK, the US and Japan. Advances in Economics, Management and Political Sciences,28,192-199.

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The Impact of Property Tax on Housing Consumption – An Empirical Study on the UK, the US and Japan

Cong Yu *^,1,

¹ Renmin University of China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/28/20231327

Abstract

Real estate taxes, as a type of tax instrument, assume the role of providing local revenue and regulating the real estate market in many countries. Out of the stimulating effect of consumption on the economy, scholars studied the impact of real estate taxes on consumption. This paper constructs a model of housing consumption expenditure applying Keynes' absolute income hypothesis. Using data from Japan, the UK and the US Office of National Statistics, an empirical study is conducted through OLS regressions, fixed effects models and random effects models. The results show that real estate taxes are negatively related to residential housing consumption expenditure and that the imposition of real estate taxes significantly reduces residential housing consumption.

Keywords

real estate tax, residential housing consumption expenditure, fixed effect regression, random effect regression

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References

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Cite this article

Yu,C. (2023). The Impact of Property Tax on Housing Consumption – An Empirical Study on the UK, the US and Japan. Advances in Economics, Management and Political Sciences,28,192-199.

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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

Conference website: https://www.icemgd.org/

ISBN：978-1-83558-077-6(Print) / 978-1-83558-078-3(Online)

Conference date: 6 August 2023

Editor：Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.28

ISSN：2754-1169(Print) / 2754-1177(Online)

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