Housing markets with foreign buyers Chao,C-C and Yu,ESH 2015, Housing markets with foreign buyers, Journal of real estate finance and economics, vol. 50, no. 2, pp. 207-218, doi: 10.1007/s11146-014-9454-3. Attached Files Name Description MIMEType Size Downloads Title Housing markets with foreign buyers Author(s) Chao,C-C orcid.org/0000-0002-1056-469X Yu,ESH Journal name Journal of real estate finance and economics Volume number 50 Issue number 2 Start page 207 End page 218 Total pages 12 Publisher Springer Place of publication Berlin, Germany Publication date 2015-02 ISSN 0895-5638 1573-045X Keyword(s) Foreign buyers Housing Optimal policy Summary There are cities in the world which have experienced substantial numbers of foreign buyers in the local housing markets, thereby pushing up the real estate prices to the levels beyond the affordability of local residents. To suppress foreign influences in the forming of housing bubbles, governments have resorted to short-term measures of stamp duty or raising the duty rate for non-local buyers, increasing down payments and restricting or even forbidding non-local purchases. These new measures may help contain the demand for housing, but short of being the first-best optimal housing policy for an open economy with significant non-local and foreign buyers. We argue that the first-best policy is to tax non-local and foreign buyers and then use the tax revenue generated to subsidize domestic low- and middle-income buyers. The optimal tax rate under this compensated scheme is smaller than the tax rate under the lump-sum transfer of tax revenue to all residents. © 2014 Springer Science+Business Media New York. Language eng DOI 10.1007/s11146-014-9454-3 Field of Research 140201 Agricultural Economics Socio Economic Objective 910303 Trade Policy HERDC Research category C1 Refereed article in a scholarly journal Copyright notice ©2015, Springer Persistent URL http://hdl.handle.net/10536/DRO/DU:30069552 Document type: Journal Article Collections: Faculty of Business and Law Deakin Business School 2018 ERA Submission Related Links Link Description Connect to Elements publication management system Go to link with your DU access privileges   Connect to published version Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Tue, 10 Feb 2015, 13:42:18 EST Tue, 10 Feb 2015, 13:48:45 EST Wed, 11 Feb 2015, 04:02:25 EST Tue, 24 Feb 2015, 05:07:22 EST Tue, 24 Feb 2015, 09:12:19 EST Tue, 24 Feb 2015, 09:13:46 EST Tue, 24 Feb 2015, 09:34:31 EST Fri, 13 Mar 2015, 14:16:45 EST Fri, 13 Mar 2015, 14:17:59 EST Filtered Full Citation counts:   Cited 0 times in TR Web of Science Cited 11 times in Scopus Search Google Scholar Access Statistics: 482 Abstract Views, 10 File Downloads  -  Detailed Statistics Created: Tue, 10 Feb 2015, 13:48:45 EST