Tax policy and housing construction

The availability and quality of housing is very closely related to the development in the building industry and to the economic opportunities in the given state. This thesis deals with the relationship between tax policy and new housing construction. Taking influence on the building industry through tax policies - that is to say, through indirect instruments - is particularly advantageous thanks to the low administrative overhead, as no further redistribution from public budgets is necessary. Hiding behind this advantage, though, are a number of difficult-to-estimate quantifications in the form of tax allowances or, conversely, of the amount of the tax burden. Indirect instruments can influence residential development activities in both positive and negative ways, and this thesis addresses both. Aside from tax instruments, the state may support new housing construction through direct instruments, a term which covers various forms of loans at preferential terms, grants and subsidies. The aim of this thesis is to test the hypothesis about the effectiveness of housing policy in terms of housing construction through direct and indirect instruments