PT  - JOURNAL ARTICLE
AU  - Pietola, Kyösti
AU  - Myyrä, Sami
AU  - Pouta, Eija
TI  - The Effects of Changes in Capital Gains Taxes on Land Sales: Empirical Evidence from Finland
AID  - 10.3368/le.87.4.582
DP  - 2011 Nov 01
TA  - Land Economics
PG  - 582--594
VI  - 87
IP  - 4
4099  - http://le.uwpress.org/content/87/4/582.short
4100  - http://le.uwpress.org/content/87/4/582.full
SO  - Land Econ2011 Nov 01; 87
AB  - We estimate the landowner response to and fiscal effects of a temporary reduction in capital gains taxes imposed on land sales. The underlying normative decision rules are first derived and solved numerically using stochastic dynamic programming. The landowner preferences and willingness to sell land are then estimated in the reduced form using survey data from Finland. The results suggest that the timing of land sales and land sales quantities respond significantly to tax incentives. Certain temporary tax waiver programs could maintain the current tax revenues with fewer trade distorting effects on the land market. (JEL H21, R10)