Housing and Tax Policy: Comment

Alpanda and Zubairy (2016) examine the effects of permanent changes to four types of housing‐related tax policies in the context of a multiagent dynamic general equilibrium (DGE) model. They find long‐run tax multipliers that range from −2.21 to −1.53. However, we find an error in their codes that h...

Full description

Saved in:
Bibliographic Details
Published in:Journal of money, credit and banking credit and banking, 2021-12, Vol.53 (8), p.2215-2219
Main Authors: GHIAIE, HAMED, ROUILLARD, JEAN‐FRANÇOIS
Format: Article
Language:English
Subjects:
dynamic general equilibrium
Fiscal policy
Housing
Housing needs
tax policy
Taxation
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Alpanda and Zubairy (2016) examine the effects of permanent changes to four types of housing‐related tax policies in the context of a multiagent dynamic general equilibrium (DGE) model. They find long‐run tax multipliers that range from −2.21 to −1.53. However, we find an error in their codes that has a significant impact on the size of these multipliers. We correct their error and resimulate their model. The long‐run multipliers we find are reduced almost in half—they now range from −1.25 to −0.84. We also compute short‐run multipliers at a 20‐quarter horizon and find much lower multipliers, ranging between −0.14 and −0.02.
ISSN:0022-2879
1538-4616
DOI:10.1111/jmcb.12817