재산세가 부동산가격과 임대료에 미치는 효과분석 = Property Tex , Real Estate Prices and Rents

다국어 초록 (Multilingual Abstract)

The objective of this paper is two-fold. First, to review the current literature on the impact of the local property tax on the prices and rents of land and structures; and secondly, to relate the findings of the literature to interpretation of recent price increases in the Korean real estate markets.
Chapter II reviews theoretical models about the relationships between the property tax and real estate prices. We investigate both static and dynamic models, treating land and structure separately. In sum, to what extent, if at all, the burden of the property tax is shifted backward or forward depends critically on the assumptions about the mobility of capital and population between regions as well as the magnitudes of such parameters as the price elasticity of housing demand, the supply elasticity of urban land, and the elasticity of substitution between land and nonland inputs in housing production.
In chapter III we evaluate the claim that recent increases in the property tax contributed to raising rental prices(chonsei deposit) of urban housing in Korea. We conclude that none of exsiting static models reviewed above can account for the short-term increase in rents. We conjecture that expectations-driven increases in bids or the reluctance to move on the part of the tenant may explain the apparent co-movement in changes in rents and property tax burdens.
Finally, it is noted that further research is needed to evaluate the impact of the new property tax introduced last year in Korea to be levied progressively on the aggregate value of total land holding by each individual.