Title

Tax Structures and FDI: The Deterrent Effects of Tax Complexity and Uncertainty

Document Type

Journal Article

Role

Author

Standard Number

0143-5671

Journal Title

Fiscal Studies

Volume

24

Issue

3

First Page

341

Last Page

359

Publication Date

2003

Abstract

This paper measures the distortionary and distributional effects of housing subsidies in the Netherlands. Its broad scope allows us to discuss the results in the light of the main justifications for subsidising housing, i.e. the merit–good argument, external effects and the distribution motive. Our measurements reveal some patterns of subsidisation that seem difficult to justify on these grounds. This applies especially to the differences between subsidisation of rental and owneroccupied housing and between mortgage– and equity–financed ownership. Moreover, the inelastic supply of housing in the Netherlands entails that subsidisation has only a limited effect on promoting housing quality.

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