Change search
ReferencesLink to record
Permanent link

Direct link
Measuring tax incidence: an application to mortgage provision in the UK
University of Warwick, CV4 7AL, UK and Institute for Fiscal Studies, London WC1E 7AE, UK. (Saïd Business School)
Keele University, Keele ST5 5BG, UK.ORCID iD: 0000-0001-9244-7018
2003 (English)In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 87, no 7-8, 1747-1778 p.Article in journal (Refereed) Published
Abstract [en]

This paper derives measures of the average and marginal incidence of a tax or subsidy in imperfect competition, in the context of the UK housing market. We argue that one form of mortgage, common in the UK but not elsewhere (the endowment mortgage), exists primarily because of the structure of taxation in the UK. We estimate the determinants of the choice of the type of mortgage, and the size of mortgage conditional on the choice, using data from the Building Societies Association on 43 000 individual mortgages taken out between 1985 and 1989. The estimated parameters are an input to the incidence measures. Results suggest that between 70 and 80% of the additional subsidy to endowment mortgages is captured by lenders, rather than borrowers.

Place, publisher, year, edition, pages
Elsevier, 2003. Vol. 87, no 7-8, 1747-1778 p.
Keyword [en]
tax incidence, tax relief, endowment, repayment mortgages
National Category
Research subject
URN: urn:nbn:se:umu:diva-83515DOI: 10.1016/S0047-2727(01)00220-1ISI: 000184745700018OAI: diva2:668446
Available from: 2013-11-29 Created: 2013-11-29 Last updated: 2014-04-10Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Lanot, Gauthier
In the same journal
Journal of Public Economics

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 33 hits
ReferencesLink to record
Permanent link

Direct link