TY - JOUR
T1 - The effect of increasing land value capture on the gross value added of the construction sector
AU - Acosta-González, Nicolás
AU - Rodríguez-Raza, Sebastián
AU - Bastidas-Ripalda, Rafaela
N1 - Publisher Copyright:
© 2020 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2020/2/26
Y1 - 2020/2/26
N2 - 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an average yearly decline of 7.1% between the trimesters in which the LOEVT was promoted until the trimester it was repealed.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.
AB - 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an average yearly decline of 7.1% between the trimesters in which the LOEVT was promoted until the trimester it was repealed.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.
KW - construction sector
KW - Ecuador
KW - Land value capture
KW - synthetic control method
UR - http://www.scopus.com/inward/record.url?scp=85080068314&partnerID=8YFLogxK
U2 - 10.1080/13504851.2020.1733467
DO - 10.1080/13504851.2020.1733467
M3 - Article
AN - SCOPUS:85080068314
SN - 1350-4851
VL - 28
SP - 65
EP - 69
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 1
ER -