Real estate transaction taxes and credit supply

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Bibliographic Details
Authors and Corporations:	Koetter, Michael (Author), Marek, Philipp (Author), Mavropoulos, Antonios (Author)
Other Authors:	Marek, Philipp [Author] • Mavropoulos, Antonios 1991- [Author]
Type of Resource:	E-Book
Language:	English
published:	Frankfurt am Main Deutsche Bundesbank [2021]
Series:	Deutsche Bundesbank: Discussion paper ; no 2021, 04
Subjects:	Fiscal Shocks Real Estate Markets Mortgage Lending Price-to-Rentratio Graue Literatur
Source:	Verbunddaten SWB Lizenzfreie Online-Ressourcen
ISBN:	9783957298126

Description
Summary:	We exploit staggered real estate transaction tax (RETT) hikes across German states to identify the effect of house price changes on mortgage credit supply. Based on approximately 33 million real estate online listings, we construct a quarterly hedonic house price index (HPI) between 2008:q1 and 2017:q4, which we instrument with state-specific RETT changes to isolate the effect on mortgage credit supply by all local German banks. First, a RETT hike by one percentage point reduces HPI by 1.2%. This effect is driven by listings in rural regions. Second, a 1% contraction of HPI induced by an increase in the RETT leads to a 1.4% decline in mortgage lending. This transmission of fiscal policy to mortgage credit supply is effective across almost the entire bank capitalization distribution.
Physical Description:	1 Online-Ressource (circa 48 Seiten); Illustrationen
ISBN:	9783957298126