| Summary: | 碩士 === 國立臺灣大學 === 國家發展研究所 === 91 === Recently, the government attempted to stimulate the housing market by cutting land tax. However, the tax-cutting policy would be affected by tax neutrality and tax incidence. There is very strong limitation within traditional partial equilibrium analysis, and general equilibrium analysis used in Harberger Model could deal better with the relationship between all goods and factors. The two-sectors and three-factors model in my thesis is just the adjustment and improvement of Harberger Model.
The theoretical model in my thesis includes housing industry, commodity industry, and three factors-land, capital, and labor. According to the assumptions, I provide a general analysis and solve the model. Furthermore, I carry comparative static and simulate analysis out on the basis of the model’s solution in order to investigate how land tax influences the housing market.
The result indicates that the urban and rural land rent will decrease in the same measure after taxing, but the cost of using urban land will increase because of tax incidence. Additionally, the input of urban land will reduce, and the measure of decrease, which turns to the commodity industry, will raise the input of rural land. In addition both the return of capital and labor will increase on account of land tax. Nevertheless, the housing price will rise and the volume of housing business will fall as land tax.
Totally speaking, though land tax may be harmful to landowners, beneficial to capitalists and labor. Moreover, land tax indeed contributes to the exploitation of land resources and the allocation between urban and rural land.
On the one hand, land tax could disadvantage the housing market; on the other hand, the tax-cutting policy might take effect because the benefit of tax incidence brings landowners and the housing industry profits, and the lower housing price leads to more volume of housing business.
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