Effect of Socio-Economic Stratification on House Value in Bogotá

Research output: Working paper

Abstract

This paper investigates the impact of urban fiscal policies on housing value. We use a
focalization system in Bogotá where certain subsidies and taxes are targeted based on a
classification of houses according to external conditions and urban surroundings
(socioeconomic stratification). We use a regression discontinuity design, and a rich dataset on cadastre appraisal and housing characteristics, to assess whether a higher tax burden affects the property value. Our results suggest that the usual (negative) capitalization effect is
compensated by other channels. We show evidence that as stratum increases, investment on the house maintenance improve.
Original languageEnglish (US)
PublisherDevelopment Bank of Latin America
Number of pages31
StatePublished - 2016

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Socio-economics
Subsidies
Property values
Tax
Tax burden
Capitalization
Regression discontinuity design
Housing values
Fiscal policy

Cite this

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title = "Effect of Socio-Economic Stratification on House Value in Bogot{\'a}",
abstract = "This paper investigates the impact of urban fiscal policies on housing value. We use afocalization system in Bogot{\'a} where certain subsidies and taxes are targeted based on aclassification of houses according to external conditions and urban surroundings(socioeconomic stratification). We use a regression discontinuity design, and a rich dataset on cadastre appraisal and housing characteristics, to assess whether a higher tax burden affects the property value. Our results suggest that the usual (negative) capitalization effect iscompensated by other channels. We show evidence that as stratum increases, investment on the house maintenance improve.",
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Effect of Socio-Economic Stratification on House Value in Bogotá. / Sepulveda Rico, Carlos Eduardo; Gallego, Juan; Montoya, Sergio .

Development Bank of Latin America, 2016.

Research output: Working paper

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AB - This paper investigates the impact of urban fiscal policies on housing value. We use afocalization system in Bogotá where certain subsidies and taxes are targeted based on aclassification of houses according to external conditions and urban surroundings(socioeconomic stratification). We use a regression discontinuity design, and a rich dataset on cadastre appraisal and housing characteristics, to assess whether a higher tax burden affects the property value. Our results suggest that the usual (negative) capitalization effect iscompensated by other channels. We show evidence that as stratum increases, investment on the house maintenance improve.

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