Fiscal interventions as housing-related macroprudential tools: a comprehensive analysis.

This article investigates the efficacy of raising tax rates on housing property and reducing mortgage repayment deductibility as macroprudential instruments to curb household indebtedness. We analyze the output and welfare implications of these measures, with a particular emphasis on the role of rev...

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Publicado en:Oxford Economic Papers Vol. 78; no. 3; pp. 740 - 770
Autor principal: Jang, Hun
Formato: Artículo
Publicado: Oxford University Press / USA Jul2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jul2026
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        10.1093/oep/gpag023
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        atl: Fiscal interventions as housing-related macroprudential tools: a comprehensive analysis.
      aug:
        au: Jang, Hun
        affil: Economic Research Institute, Bank of Korea, 39, Namdaemun-ro, Jung-gu, Seoul 04531, Republic of Korea
      su:
        Fiscal policy
        Debt
        Welfare economics
        Property tax
        Macroeconomic models
      sug:
        subj:
          Fiscal policy
          Debt
          Welfare economics
          Public Finance Activities
          Property tax
          Macroeconomic models
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        copyrightHolder:Oxford University Press
        copyrightYear:2026
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        E61
        fiscal policy
        H20
        H50
        housing market
        inLanguage:en
        macroprudential policy
        policy coordination
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/oep/gpag023
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        E58
        E61
        fiscal policy
        H20
        H50
        housing market
        inLanguage:en
        macroprudential policy
        policy coordination
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/oep/gpag023
      ab: This article investigates the efficacy of raising tax rates on housing property and reducing mortgage repayment deductibility as macroprudential instruments to curb household indebtedness. We analyze the output and welfare implications of these measures, with a particular emphasis on the role of revenue allocation. Utilizing a dynamic general equilibrium framework, we find that while both instruments successfully reduce house prices and credit, raising tax rates on housing property induces more significant price contractions and higher short-run output costs. In contrast, reducing mortgage repayment deductibility is more targeted, effectively lowering mortgage default rates and minimizing collateral erosion. Welfare outcomes depend crucially on fiscal recycling: allocating revenues to public investment or debt reduction primarily benefits patient households, whereas directing revenues toward transfer payments mitigates the welfare losses of credit-constrained borrowers and maximizes benefits for renters by alleviating liquidity constraints.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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