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Röstar skåningar med fötterna? Om kommunal skatt och välfärds påverkan på bostadspriserna

Henriksson, Lucas LU (2022) NEKH03 20221
Department of Economics
Abstract
This paper examines if individuals take local income taxes and public spending into account when choosing where to live. A hedonic price model is applied to a dataset containing 5545 sales in southern Skåne to used to analyze the effects of local tax and spending differences on the prices of privately-owned housing. The different effects for apartments and houses as well as the effect of municipal finance equalization are analyzed as well.

The results vary based on how municipalities are grouped. In the area most consistent with the assumptions of the Tiebout hypothesis, local tax rates and public spending are found to significantly affect housing prices, suggesting that individuals indeed vote with their feet. This result is consistent... (More)
This paper examines if individuals take local income taxes and public spending into account when choosing where to live. A hedonic price model is applied to a dataset containing 5545 sales in southern Skåne to used to analyze the effects of local tax and spending differences on the prices of privately-owned housing. The different effects for apartments and houses as well as the effect of municipal finance equalization are analyzed as well.

The results vary based on how municipalities are grouped. In the area most consistent with the assumptions of the Tiebout hypothesis, local tax rates and public spending are found to significantly affect housing prices, suggesting that individuals indeed vote with their feet. This result is consistent with the results from other studies. The varying results in different groups of municipalities suggest that there might be methodological problems associated with the geographical selection or that the data set is too small. The results raise several questions that should be addressed in future research. (Less)
Please use this url to cite or link to this publication:
author
Henriksson, Lucas LU
supervisor
organization
course
NEKH03 20221
year
type
M2 - Bachelor Degree
subject
keywords
Tiebout, local income tax, capitalization, housing prices, municipal finance equalization
language
Swedish
id
9083523
date added to LUP
2022-10-10 09:12:22
date last changed
2022-10-10 09:12:22
@misc{9083523,
  abstract     = {{This paper examines if individuals take local income taxes and public spending into account when choosing where to live. A hedonic price model is applied to a dataset containing 5545 sales in southern Skåne to used to analyze the effects of local tax and spending differences on the prices of privately-owned housing. The different effects for apartments and houses as well as the effect of municipal finance equalization are analyzed as well.

The results vary based on how municipalities are grouped. In the area most consistent with the assumptions of the Tiebout hypothesis, local tax rates and public spending are found to significantly affect housing prices, suggesting that individuals indeed vote with their feet. This result is consistent with the results from other studies. The varying results in different groups of municipalities suggest that there might be methodological problems associated with the geographical selection or that the data set is too small. The results raise several questions that should be addressed in future research.}},
  author       = {{Henriksson, Lucas}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Röstar skåningar med fötterna? Om kommunal skatt och välfärds påverkan på bostadspriserna}},
  year         = {{2022}},
}