Browsing by Author "Romero, Desiderio"

Now showing 1 - 2 of 2

Open Access
Determinants of the Spanish housing market over three decades and three booms: Long run supply and demand elasticities
(Te Herenga Waka—Victoria University of Wellington, 2014) Arrazola, María; de Hevia, José; Romero, Desiderio; Sanz-Sanz, José Félix
This paper offers a quantitative analysis of housing supply and demand in Spain. To this end, it formulates a model in line with the traditional models of the literature. Using Spanish data for the period 1975 to 2009, reduced form and structural models are estimated. The results obtained show that faced with situations of disequilibrium prices adjust more rapidly than stock. Similarly, they demonstrate that demand shows low sensitivity to variations in prices and real interest rates. By contrast, it is highly sensitive to demographic changes and the evolution of the labor market. The evidence confirms that permanent income has greater weight than prices as a determinant of demand. Moreover, supply is very sensitive to variations in prices and interest rates.
Open Access
Personal Income Tax Reforms and the Elasticity of Reported Income to Marginal Tax Rates: An Empirical Analysis Applied to Spain
(Te Herenga Waka—Victoria University of Wellington, 2014) Arrazola, María; de Hevia, José; Romero, Desiderio; Sanz-Sanz, José Félix
This paper shows the utility of the elasticity of reported income to assess tax reforms in detail from the perspectives of tax revenue and well-being. We provide evidence of the value of the elasticity of reported income in Spain given the variations in marginal rates of the Personal Income Tax. The mean value of this parameter for the entire Spanish territory is 1,541. Nevertheless, we confirm the existence of considerable heterogeneity in the value of this elasticity depending on taxpayers’ characteristics. Based on these estimated elasticities, we make a detailed assessment of the impact of the recent increase in marginal tax rates that Spain approved in 2012.