Tax Evasion and the Consequences in the Real Estate Market


Date & Time: November 26, 2018  10:00 - 11:30 a.m.

Venue: SEM 411 Meeting Room

Speaker: Dr. Yu QIN (National University of Singapore)

Inviter: Long Wang


Tax is often considered an effective tool for many different policy purposes including curbing speculations in the housing markets. We document the effect of capital gain tax change on housing resale transactions in Beijing. More importantly, we examine how evasion of such tax may dwarf the effectiveness of the policy and generate unintended consequences. We find that market participants respond to the tax policy change and try to absorb the shock by evading the increased tax. Furthermore, our results suggest that the policy has strong heterogeneous effects on different types of buyers and may unintendedly hurt the buyers with inelastic demand in the market by reducing their financing from formal institutions.

Speaker Biography

Dr. Yu QIN is an assistant professor in the Department of Real Estate at the National University of Singapore. She completed her PhD in applied economics and management at Cornell University in 2014 and started her academic career at NUS the same year.

Dr. Qin’s research interests include urban and regional economics, economic development and applied econometrics. Specifically, she focuses on the impact of transportation infrastructure on economic activities, urban housing and land market, and urban externalities (positive externalities such as knowledge spillovers, and negative externalities such as noises and air pollution). Her research has appeared in leading academic journals such asJournal of Economic Geography, World Development, Journal of Population Economics, Regional Science and Urban Economics, Real Estate Economics, among others.