A Dynamic Stochastic General Equilibrium Analysis of the Effects of A Luxury Tax on Taiwan’s Housing Market

• Main Authors: You-Hao Lai, 賴又豪
• Other Authors: Shiou-Yen Chu
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/5nb36u

碩士 === 國立中正大學 === 國際經濟研究所 === 103 === High housing prices, not only reduce people’s intention of buying house, increase the operating costs of enterprises, but encourage speculation in the real estate market and accelerate the occurrence of asset bubbles. Since June 2011, the Ministry of Finance has implemented “The Specifically Selected Goods and Services Tax Act”, commonly known as the Luxury Tax to mitigate the rising housing prices. The tax base is the selling price and the taxpayer is the original owner of the house. Dynamic stochastic general equilibrium (DSGE) model is a standard tool for policy analysis. The purpose of this paper is to study the effect of a housing transaction tax on Taiwan’s housing market. We set up a two-agent, two-sector, closed-economy DSGE model. We examine the dynamics of housing prices and housing consumption in response to tax policy shocks, Loan-to-value shocks and interest rate shocks. The results show that using the tax policy is more useful than increasing interest rates to curb the housing prices.