Property Taxation and the Demand for Floor Space in Japan

Author: Miki Seko

Start Page: 35
End Page: 48
Volume: 2
Issue Number: 1
Year: 1999
Publication: International Real Estate Review


This is the first study applying the econometric analysis of piecewise-linear budget constraints arising from space-linked property taxation to Japanese housing data. The model employed is the classical Hausman type with convex piecewise-linear budget constraints and fixed preferences. We estimate that if spaced-linked property taxation for newly built houses is abolished, it would then eliminate a current excess tax burden per household of approximately 25,000 yen.

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