Analysis of the effects on macro economy after levying domestic house property tax based on dsge modelAuthor(s): Bo Jin
The real estate market is covered a wide range. Its fluctuations impacted the industries can affect the whole national economy trend. In recent years, China's real estate bubble is becoming serious increasingly. Housing prices rises too fast. China's relevant government departments puts forward levying house property tax to solve these problem. In order to study the effects of property tax, this research uses a dynamic stochastic general equilibrium model (DSGE model) to analyze housing data information and introduce the property taxÂs impact on various economic indicators. Some conclusions are as follows. The collection of real estate stockÂs property taxes can reduce housing prices for a long time. But it has negative effects on macro economy. If the property tax rate increases, the total output, consumption, housing stock, house prices and land prices will reduce. The real estate tax of government will reduce too. Government revenues will be reduced. Besides, through the simulation of the data of Shanghai property tax pilot. It shows that the variables of money demand, science and technology have more positive long-term effects on macro economy. Consumption demand variables and housing demand variables have a short-term positive impact on macro economy. While the labor supply variablesÂ impact has a negative effect on macro economy.