The effect of increasing land value capture on the gross value added of the construction sector

Nicolás Acosta-González; Sebastián Rodríguez-Raza; Rafaela Bastidas-Ripalda

doi:10.1080/13504851.2020.1733467

The effect of increasing land value capture on the gross value added of the construction sector

Nicolás Acosta-González^*
, Sebastián Rodríguez-Raza
, Rafaela Bastidas-Ripalda

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

1 Scopus citations

Abstract

This paper estimates the effect of an increase in land value tax related to capital gains on the gross value added (GVA) of the construction sector. Using synthetic control method, the results indicate that the GVA of the construction sector presented an average yearly decline of 7.1% between the trimesters in which the LOEVT was promoted until the trimester it was repealed. Placebo tests applied to other sectors, excluding the construction sector, validate our result.

Original language	English
Pages (from-to)	65-69
Number of pages	5
Journal	Applied Economics Letters
Volume	28
Issue number	1
DOIs	https://doi.org/10.1080/13504851.2020.1733467
State	Published - 26 Feb 2020

Bibliographical note

Publisher Copyright:
© 2020 Informa UK Limited, trading as Taylor & Francis Group.

Funding

Funders
Pontifical Catholic University of Ecuador

Keywords

construction sector
Ecuador
Land value capture
synthetic control method

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10.1080/13504851.2020.1733467

Cite this

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abstract = "This paper estimates the effect of an increase in land value tax related to capital gains on the gross value added (GVA) of the construction sector. Using synthetic control method, the results indicate that the GVA of the construction sector presented an average yearly decline of 7.1\% between the trimesters in which the LOEVT was promoted until the trimester it was repealed. Placebo tests applied to other sectors, excluding the construction sector, validate our result.",

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The effect of increasing land value capture on the gross value added of the construction sector

Abstract

Bibliographical note

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Keywords

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