Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272958 
Year of Publication: 
2022
Series/Report no.: 
ESRI Working Paper No. 730
Publisher: 
The Economic and Social Research Institute (ESRI), Dublin
Abstract: 
In the growing literature on the importance of household balance sheets to macroeconomic developments, the relationship between housing wealth and fiscal outturns needs consideration given the likely links between housing market developments and particular tax headings. We adopt the housing net worth model for this purpose. Using a panel dataset of 18 European countries over the period 1998 to 2017, we find changes in housing net worth having a significant impact on the primary budget balance, with increases (decreases) in housing net worth causing the budget balance to improve (dis-improve). Further support for the importance of this channel to the public finances arises by differentiating observations based on the amount of revenue raised under particular tax headings.
Subjects: 
Housing Wealth
House Prices
Government Budget Balance
JEL: 
E62
H31
G51
Document Type: 
Working Paper

Files in This Item:
File
Size
922.26 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.