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Forecasting_Swedish_real_estate_prices_ver__2022_12_27.pdf (2.89 MB)
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Property Tax Capitalization in Sweden--Evidence from the 2008 Reform

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posted on 2023-03-21, 15:53 authored by Hsi-Wei Chou, Timotheos Mavropoulos, Yi-Yun Lee, Tzu-Ching Lin, Torbjörn E. M. NordlingTorbjörn E. M. Nordling

The paper investigates the effect of the property taxation reform introduced in Sweden from 2006 to 2008 on the market price of the affected properties (one-family houses). We make an extensive empirical analysis of the tax capitalization effect, given that prior research has detected only partial capitalization and that there has been an extensive debate regarding the extent to which the tax gets capitalized into property market prices. In particular, the tax capitalization effect for single-family house prices was investigated by looking into various sub-groups of properties and doing extensive statistical inquiries into the property transaction data. Despite a relatively broad time period in which the reform took place, a jump in the market values of the affected properties is detectable in the fourth quarter of 2006. Our findings emphasise the importance of creating a representative data sample in analyzing and assessing the outcomes and impacts of policy interventions such as a taxation reform.


MOST 110-2222-E-006-010

MOST 111-2221-E-006-186


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Lead author country

  • Taiwan

Lead author job role

  • Undergraduate Student

Lead author institution

National Cheng Kung University

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