Work

Land rent discontinuities and taxation in the cross-border commuting region

Year: 2025

Type: article

Abstract: Cross-border housing markets have become more prevalent in Europe since the establishment of the European Union. Using data from the functional urban area of Luxembourg, we document significant floorspace price discontinuities at the borders of Luxembourg with Belgium, France, and Germany. Employing a quantitative spatial urban model and spatial regression discontinuity techniques, we show that differences in tax rates and tax importation account for 9% and 17% of the observed price jump, respectively. The remaining price discrepancy is explained by differences in productivity and amenities.

Source: Open Repository and Bibliography (University of Luxembourg)

Authors: KUDASHEV, Raian, PICARD, Pierre

Institution: University of Luxembourg

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Sustainable cities and communities, Reduced inequalities

Open Access status: green

Funder: Fonds National de la Recherche Luxembourg

Award: G5514593993