Recent reforms in Spanish housing markets: an evaluation using a DSGE model
After a long academic debate, Spain finally repealed in 2012 the deduction for home purchase. The abrogation took effect in 2013. In parallel, the VAT for the purchase of new housing was increased after a short period in which it had a reduced rate. The aim of this paper is to assess the macroeconom...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Published: |
Elsevier
2014
|
| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/29823/ |
| _version_ | 1848793859655467008 |
|---|---|
| author | Mora-Sanguinetti, Juan S. Rubio, Margarita |
| author_facet | Mora-Sanguinetti, Juan S. Rubio, Margarita |
| author_sort | Mora-Sanguinetti, Juan S. |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | After a long academic debate, Spain finally repealed in 2012 the deduction for home purchase. The abrogation took effect in 2013. In parallel, the VAT for the purchase of new housing was increased after a short period in which it had a reduced rate. The aim of this paper is to assess the macroeconomic effects of these two relevant housing market reforms. In order to do that, we use a dynamic stochastic general equilibrium (DSGE) model calibrated to capture the key ratios of the Spanish economy. The model includes a housing market, covering both the rental market side and the property market side and credit-constrained agents. We find that these measures drive down housing prices and have a negative impact on output and employment in the construction sector. However, in the long run, this last effect is offset by the benefits of a reduction in distortionary taxes. |
| first_indexed | 2025-11-14T19:07:00Z |
| format | Article |
| id | nottingham-29823 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:07:00Z |
| publishDate | 2014 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-298232020-05-04T16:52:46Z https://eprints.nottingham.ac.uk/29823/ Recent reforms in Spanish housing markets: an evaluation using a DSGE model Mora-Sanguinetti, Juan S. Rubio, Margarita After a long academic debate, Spain finally repealed in 2012 the deduction for home purchase. The abrogation took effect in 2013. In parallel, the VAT for the purchase of new housing was increased after a short period in which it had a reduced rate. The aim of this paper is to assess the macroeconomic effects of these two relevant housing market reforms. In order to do that, we use a dynamic stochastic general equilibrium (DSGE) model calibrated to capture the key ratios of the Spanish economy. The model includes a housing market, covering both the rental market side and the property market side and credit-constrained agents. We find that these measures drive down housing prices and have a negative impact on output and employment in the construction sector. However, in the long run, this last effect is offset by the benefits of a reduction in distortionary taxes. Elsevier 2014-08-05 Article PeerReviewed Mora-Sanguinetti, Juan S. and Rubio, Margarita (2014) Recent reforms in Spanish housing markets: an evaluation using a DSGE model. Economic Modelling, 44 (Supp.1). S42-S49. ISSN 0264-9993 Housing Market Reforms Rental Market House Prices Home Purchase Deduction VAT on New Home Purchase http://www.sciencedirect.com/science/article/pii/S0264999314002478 doi:10.1016/j.econmod.2014.04.028 doi:10.1016/j.econmod.2014.04.028 |
| spellingShingle | Housing Market Reforms Rental Market House Prices Home Purchase Deduction VAT on New Home Purchase Mora-Sanguinetti, Juan S. Rubio, Margarita Recent reforms in Spanish housing markets: an evaluation using a DSGE model |
| title | Recent reforms in Spanish housing markets: an evaluation using a DSGE model |
| title_full | Recent reforms in Spanish housing markets: an evaluation using a DSGE model |
| title_fullStr | Recent reforms in Spanish housing markets: an evaluation using a DSGE model |
| title_full_unstemmed | Recent reforms in Spanish housing markets: an evaluation using a DSGE model |
| title_short | Recent reforms in Spanish housing markets: an evaluation using a DSGE model |
| title_sort | recent reforms in spanish housing markets: an evaluation using a dsge model |
| topic | Housing Market Reforms Rental Market House Prices Home Purchase Deduction VAT on New Home Purchase |
| url | https://eprints.nottingham.ac.uk/29823/ https://eprints.nottingham.ac.uk/29823/ https://eprints.nottingham.ac.uk/29823/ |