Download or read book Role of Taxes on Property in Containing Asset Bubbles Consequent Recession written by Vinay Kumar Singh and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper attempts to analyze the role of taxes on property in containing asset bubbles and its consequent recessionary impact, by developing a framework, wherein the housing market is conceived as consisting of several sub-markets i.e. rental housing market, house resale market, new construction market, housing capital market and land market, with each market having an intra-market equilibrium derived by its demand and supply function, as well as several inter-market equilibria, which get readjusted after any shock with time lags and friction. The resale market is perceived as an asset market largely governed by expectations of economic agents, who are forward looking and utility maximizing. However, the expectations are not assumed to be perfectly rational, and instead are derived by heuristic decision making amidst constraint of both information and analyzing capability, are therefore subjective and can vary from time to time. In the housing resale market, the demand as well as supply is governed primarily by future expectations of returns and additional capital gains. The capital gains have a perpetuating or exponential function, indicating a positive feedback cycle and unsustainability. The analysis of two episodes of asset bubble formation and bust, in Japan, in 1980s and in United States, in recent years, with the aid of this framework shows that the asset bubble-bust can be explained using this framework, and there does not appear any inconsistencies between the theoretical framework and the empirical evidence. Both the asset bubbles show evidence of positive feedback cycles indicated by a phase of exponential growth that seems to have resulted from the positive feedback created by the self realizing expectations of market participants. In both the episodes the bubble appears to have been finally busted by the falling 'affordability' that was a result of rise in prices, thereby indicating an inherent unsustainability in the positive feedback dependent bubble-bust cycle, which is captured in the framework. The analysis of tax measures related with property using the framework shows that empirical evidence of the incidence of taxes and their impact is largely consistent with the results obtained with the framework, and with its use it is possible to reconcile some of the differences in views, including those between the traditional and the new-capitalist view of property taxes. The analysis of taxes allows an easy way to analyze the impact of taxes in the development of asset bubbles, and also differentiates between tax measures that are pro cyclic and those that are counter cyclic. From the analysis, it is observed that deductibility of interest and capital gains tax can have a strong role in the development of asset bubbles. Capital gains tax has a complex impact as its reduction raises the expectations of capital gains which are central to the housing price in an asset resale market, while its increase causes a lock-in, which also increases the prices, indicating that its Impact on house/land prices may differ from time to time. It is observed that tax design plays an important role, by varying the effective tax rate, often widely among the taxpayers in the same jurisdiction, and that erosion of the tax base by rising prices can make the property taxes pro cyclic and aid development of bubbles. The analysis of tax measures in the two asset bubble episodes indicates that the tax environment may have significantly contributed to the development of asset bubbles, and that more informed tax policies can have a role in preventing asset bubble development in future. More elaborate analysis of tax incidence and impact, and efforts for developing a model that allows quantitative estimation of the impact of taxes in asset bubbles are recommended for further research.

Download or read book The Housing Crisis and State and Local Government Tax Revenue written by Byron F. Lutz and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: State and local government tax revenues dropped steeply following the most severe housing market contraction since the Great Depression. We identify five main channels through which the housing market affects state and local tax revenues: property tax revenues, transfer tax revenues, sales tax revenues (including a direct effect through construction materials and an indirect effect through the link between housing wealth and consumption), and personal income tax revenues. We find that property tax revenues do not tend to decrease following house price declines. We conclude that the resilience of property tax receipts is due to significant lags between market values and assessed values of housing and the tendency of policy makers to offset declines in the tax base with higher tax rates. The other four channels have had a relatively modest effect on state tax revenues. We calculate that these channels jointly reduced tax revenues by $15 billion from 2005 to 2009, which is about 2 percent of total state own-source revenues in 2005. We conclude that the recent contraction in state and local tax revenues has been driven primarily by the general economic recession, rather than the housing market per-se.

Download or read book Real Estate Economics written by Nicholas G. Pirounakis and published by Routledge. This book was released on 2013 with total page 514 pages. Available in PDF, EPUB and Kindle. Book excerpt: Real Estate Economics: A point-to-point handbook introduces the main tools and concepts of real estate (RE) economics. It covers areas such as the relation between RE and the macro-economy, RE finance, investment appraisal, taxation, demand and supply, development, market dynamics and price bubbles, and price estimation. It balances housing economics with commercial property economics, and pays particular attention to the issue of property dynamics and bubbles – something very topical in the aftermath of the US house-price collapse that precipitated the global crisis of 2008. This textbook takes an international approach and introduces the student to the necessary ‘toolbox’ of models required in order to properly understand the mechanics of real estate. It combines theory, technique, real-life cases, and practical examples, so that in the end the student is able to: • read and understand most RE papers published in peer-reviewed journals; • make sense of the RE market (or markets); and • contribute positively to the preparation of economic analyses of RE assets and markets soon after joining any company or other organization involved in RE investing, appraisal, management, policy, or research. This book should be particularly useful to third-year students of economics who may take up RE or urban economics as an optional course, to postgraduate economics students who want to specialize in RE economics, to graduates in management, business administration, civil engineering, planning, and law who are interested in RE, as well as to RE practitioners and to students reading for RE-related professional qualifications.

Download or read book The Ecology of Tax Systems written by Vito Tanzi and published by Edward Elgar Publishing. This book was released on 2018-03-30 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt: This groundbreaking book analyzes how the ecology of taxation is fundamental for the success or failure of tax systems. It specifically focuses on the role of the ecological environment on taxation; the factors that determine the ecology of taxation; and how the ecology of taxation has changed and may continue to evolve. The implicit, important conclusion is that there are no permanent or universal optimal tax theories: all theories are related to this ecology.

Download or read book Taxation and the Financial Crisis written by Julian S. Alworth and published by Oxford University Press (UK). This book was released on 2012-02-23 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines how tax policies contributed to the financial crisis; whether taxation can play a role in the reform efforts to establish a sounder and safer financial system; and the pros and cons of various tax initiatives.

Download or read book Handbook on Social Structure of Accumulation Theory written by McDonough, Terrence and published by Edward Elgar Publishing. This book was released on 2021-12-07 with total page 424 pages. Available in PDF, EPUB and Kindle. Book excerpt: This pioneering Handbook offers a state-of-the-art exploration of the social structure of accumulation theory, a leading theory of stages of capitalism, expertly summarising its development to date. It breaks new ground in several areas, including econometric evidence for the theory and developing institutional analyses of technology and the environment.

Download or read book Changing Inequalities and Societal Impacts in Rich Countries written by Brian Nolan and published by OUP Oxford. This book was released on 2014-01-30 with total page 786 pages. Available in PDF, EPUB and Kindle. Book excerpt: There has been a remarkable upsurge of debate about increasing inequalities and their societal implications, reinforced by the economic crisis but bubbling to the surface before it. This has been seen in popular discourse, media coverage, political debate, and research in the social sciences. The central questions addressed by this book, and the major research project GINI on which it is based, are: - Have inequalities in income, wealth and education increased over the past 30 years or so across the rich countries, and if so why? - What are the social, cultural and political impacts of increasing inequalities in income, wealth and education? - What are the implications for policy and for the future development of welfare states? In seeking to answer these questions, this book adopts an interdisciplinary approach that draws on economics, sociology, and political science, and applies a common analytical framework to the experience of 30 advanced countries, namely all the EU member states except Cyprus and Malta, together with the USA, Japan, Canada, Australia and South Korea. It presents a description and analysis of the experience of each of these countries over the past three decades, together with an introduction, an overview of inequality trends, and a concluding chapter highlighting key findings and implications. These case-studies bring out the variety of country experiences and the importance of framing inequality trends in the institutional and policy context of each country if one is to adequately capture and understand the evolution of inequality and its impacts.

Download or read book Housing Markets and the Global Financial Crisis written by Ray Forrest and published by Edward Elgar Publishing. This book was released on 2011-01-01 with total page 273 pages. Available in PDF, EPUB and Kindle. Book excerpt: The impacts of the so-called global crisis are, in fact, highly uneven for both households and institutions. This unique book investigates why this is the case, whilst emphasizing the consequences. It encompasses the experiences of all the major economies, including: Australia, China, Hong Kong, Hungary, Iceland, Ireland, Japan, New Zealand, the Netherlands, South Korea, the USA, the UK and Vietnam, highlighting and comparing a wide range of housing systems and crisis impacts. Housing Markets and the Global Financial Crisis will strongly appeal to academics and postgraduate students in social policy, urban studies, public policy, economics, sociology and human geography. In addition, anyone with a general interest in globalization, neoliberalism and the changing nature of contemporary capitalist societies, as well as those with particular interests in housing markets and housing policy, will find this book enriching and enlightening.

Download or read book IMF Staff Papers Volume 49 No 3 written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 2002-09-23 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper empirically investigates the monetary impact of banking crises in Chile, Colombia, Denmark, Japan, Kenya, Malaysia, and Uruguay during 1975–98. Cointegration analysis and error correction modeling are used to research two issues: (i) whether money demand stability is threatened by banking crises; and (ii) whether crises lead to structural breaks in the relation between monetary indicators and prices. Overall, no systematic evidence that banking crises cause money demand instability is found. The paper also analyzes inflation targeting in the context of the IMF-supported adjustment programs.

Download or read book From The Global Financial Tsunami To The Property Bubbles In Asia The Need For A New Discipline On Macroeconomic Management written by Yip Paul Sau Leung and published by World Scientific. This book was released on 2019-03-20 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses the formation of the current huge property bubbles in many Asian economies and the high likelihood of another Asian financial crisis due to the eventual bursting of these property bubbles. In particular, it explains:In view of the huge costs due to the macroeconomic policy mistakes in many developing economies and some advanced economies, this book recommends the development of a new economic discipline on macroeconomic management and rigorous selection procedures of key economic and monetary officials. If properly done, these would help pre-empt financial crises, currency crises and asset bubbles in the future.

Download or read book The Housing Boom and Bust written by Thomas Sowell and published by Basic Books (AZ). This book was released on 2009-05-12 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains how we got into the current economic disaster that developed out of the economics and politics of the housing boom and bust. The "creative" financing of home mortgages and "creative" marketing of financial securities based on these mortgages to countries around the world, are part of the story of how a financial house of cards was built up--and then collapsed.

Download or read book Macroeconomics in Context written by Neva Goodwin and published by Routledge. This book was released on 2015-03-12 with total page 496 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macroeconomics in Context lays out the principles of macroeconomics in a manner that is thorough, up to date, and relevant to students. Like its counterpart, Microeconomics in Context, the book is attuned to economic realities--and it has a bargain price. The in Context books offer affordability, engaging treatment of high-interest topics from sustainability to financial crisis and rising inequality, and clear, straightforward presentation of economic theory. Policy issues are presented in context--historical, institutional, social, political, and ethical--and always with reference to human well-being.

Download or read book Real Estate Concepts written by Ernie Jowsey and published by Routledge. This book was released on 2014-07-11 with total page 521 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essential reference tool for all real estate, property, planning and construction students. Real Estate Concepts provides built environment students with an easy to use guide to the essential concepts they need to understand in order to succeed in their university courses and future professional careers. Key concepts are arranged, defined and explained by experts in the field to provide the student with a quick and reliable reference throughout their university studies. The subjects are conveniently divided to reflect the key modules studied in most property, real estate, planning and construction courses. Subject areas covered include: Planning Building surveying Valuation Law Economics, investment and finance Quantity surveying Construction and regeneration Sustainability Property management Over the 18 alphabetically arranged subject specific chapters, the expert contributors explain and illustrate more than 250 fully cross-referenced concepts. The book is packed full of relevant examples and illustrations and after each concept further reading is suggested to encourage a deeper understanding. This book is an ideal reference when writing essays, assignments and revising for exams.

Download or read book Beyond Feelbad Britain written by Michael Prior and published by Lulu.com. This book was released on 2009-02-03 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: A survey of the origins of the present economic recession and proposals for a progressive way out

Download or read book Bubbles Booms and Busts written by Donald Rapp and published by Springer. This book was released on 2014-11-14 with total page 374 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book deals at some length with the question: Since there are many more poor than rich, why don’t the poor just tax the rich heavily and reduce the inequality? In the 19th century and the first half of the 20th century, the topic of inequality was discussed widely. Ending or reducing inequality was a prime motivating factor in the emergence of communism and socialism. The book discusses why later in the 20th century, inequality has faded out as an issue. Extensive tables and graphs of data are presented showing the extent of inequality in America, as well as globally. It is shown that a combination of low taxes on capital gains contributed to a series of real estate and stock bubbles that provided great wealth to the top tiers, while real income for average workers stagnated. Improved commercial efficiency due to computers, electronics, the Internet and fast transport allowed production and distribution with fewer workers, just as the advent of electrification, mechanization, production lines, vehicles and trains in the 1920s and 1930s produced the same stagnating effect.

Download or read book Financial Crises Explanations Types and Implications written by Mr.Stijn Claessens and published by International Monetary Fund. This book was released on 2013-01-30 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.

Download or read book Behavioral Finance written by Rolf J. Daxhammer and published by UVK Verlag. This book was released on 2023-01-30 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the last 50 years, neoclassical financial theory has been dominating our perception of what is happening in financial markets. It has spurred numerous valuable theories and concepts all based on the concept of Homo Economicus, the strictly rational economic man. However, humans do not always act in a strictly rational manner. For students and practitioners alike, our book aims at opening the door to another perspective on financial markets: a behavioral perspective based on a Homo Oeconomicus Humanus. This agent acts with limited rationality when making decisions. He/she uses heuristics and shortcuts and is prone to the influence of emotions. This sounds familiar in real life and can be transferred to what happens in financial markets, too.