Analysis of the Apartment Market in Behavioral Tax using PRMR and LRMR
AUTHORS
Seong-hoon Jeong,Associate professor in Dept. of Economics & amp; International Trade, Daegu Catholic University, Daegu city, 384-30, South Korea
In-ho Choi,Professor in Dept. of Real Estate, Namseoul University, Cheonan city, 331-707, South Korea
ABSTRACT
This study analyzed the PRMR and LRMR of the apartment market. The data were collected from January 2006 to June 2014. The trade data of 360 apartments were used. Each data is analyzed for 60 days before and after the implementation date; Before 60 days means -60 days from the implementation to -1 day, and after 60 days means +1 day from the implementation to +60 days. These data show a statistical significance, which is calculated through the statistical analysis. The result says that the permanent decrease in the acquisition tax rate increased the profit realization of the profit investors. And the apartment owner do not realize loss often because the apartments are used for a living place. In other words, it is considered that the implementation of other policy of tax increase except the third acquisition tax increase led investors’ cognitive bias to decrease that had been existed.
KEYWORDS
PRMR(Profit Real Estate Maximized Potential Rate of Profit), LRMR(Loss Real Estate Maximized Potential Rate of Loss), MPRP(Maximized Potential Rate of Profit in Real Estate Price Index), Behavioral Tax, apartment market
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