OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
Housing, Financial and Capital Taxation Policies to Ensure Robust Growth in Sweden
Extensive structural reforms since the early 1990s have strengthened the resilience of the Swedish
economy to shocks. However, more needs to be done to better manage near-term risks and ensure that
growth remains sustainable in the longer run. Reforming the housing market would reduce the risks
associated with high house prices, ensure adequate residential investment and improve labour mobility and
well-being. Clarifying the division of responsibilities in financial regulation and improving the
macroprudential toolkit would reduce the risks to stability and the contingent fiscal liabilities arising from
a large, concentrated banking system. Better aligning the taxation of different types of assets would make
taxation more neutral.
Keywords: capital taxation, macroprudential regulation, housing markets, growth, rent regulation, household, bank resolution, Sweden, financial stability
H2: Public Economics / Taxation, Subsidies, and Revenue;
G21: Financial Economics / Financial Institutions and Services / Banks; Depository Institutions; Micro Finance Institutions; Mortgages;
G28: Financial Economics / Financial Institutions and Services / Financial Institutions and Services: Government Policy and Regulation;
G18: Financial Economics / General Financial Markets / General Financial Markets: Government Policy and Regulation;
R21: Urban, Rural, Regional, Real Estate, and Transportation Economics / Household Analysis / Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand;
R38: Urban, Rural, Regional, Real Estate, and Transportation Economics / Real Estate Markets, Spatial Production Analysis, and Firm Location / Production Analysis and Firm Location: Government Policy;
R31: Urban, Rural, Regional, Real Estate, and Transportation Economics / Real Estate Markets, Spatial Production Analysis, and Firm Location / Housing Supply and Markets;
D13: Microeconomics / Household Behavior and Family Economics / Household Production and Intrahousehold Allocation;
E21: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Macroeconomics: Consumption; Saving; Wealth