Shocks regulatorios al mercado inmobiliario de Chile: ¿Cuánto del IVA a la vivienda se transfiere a precio de venta?

Lozano Navarro, Francisco-Javier and Idrovo Aguirre, Byron (2023): Shocks regulatorios al mercado inmobiliario de Chile: ¿Cuánto del IVA a la vivienda se transfiere a precio de venta?

Abstract

This study shows that the 2014 tax reform in Chile (Law No. 20.780) caused a significant increase in housing sales prices. We exploit the way tax regulation was applied in Chile to generate an analysis framework based on a natural experiment. By applying difference-in-difference estimation technique, we found that the implementation of VAT on housing sales since 2016 caused an additional increase in prices between 9,6% and 12,6%. In addition, we detect heterogeneity in the transfer of VAT to prices, according to house values and location. Finally, we found two events that caused a rise in housing prices: the announcement of the tax reform in 2014 and the implementation of the Law in 2016.

• Item Type: MPRA Paper
• English Title: Regulatory shocks to housing market: How much of the Chilean VAT on housing sales is transferred to prices?
• Language: Spanish
• Keywords: real estate, housing, taxation, VAT, difference-in-differences
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design; H - Public Economics > H2 - Taxation, Subsidies, and Revenue; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location

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