Kraks Fond Seminar den 22. marts fra kl.12-13 “How do households value the future? Evidence from property taxes” Associate Professor Hans Koster, Vrije Universiteit Amsterdam

Kraks Fond Seminar. Fæstningens Materialgård, Frederiksholms Kanal 30, Bygning D. Fra kl. 12-13. Alle er velkomne!


Despite the near ubiquity of inter-temporal choice, there is little consensus on the rate at which individuals trade present and future costs and benefits. We contribute to this debate by estimating discount rates from extensive data on housing transactions and spatio-temporal variation in property taxes in England. We find that discount rates implied by perpetual property tax financial flows and house prices are rather low (between 3 and 4%) and relatively stable over time and space. Recovering discount rates from the effect of taxes on home values is supported by ancillary results indicating that property taxes are fully capitalised into rents.


Keywords: housing, property taxes, discount rates, capitalisation rates