W. Gavin Ekins (Emory University, Department of Economics), The Role of Capital Gains Taxes in the Housing Bubble:
Capital gains taxes are integrated into an excess-bid model to develop an analytical narrative of the housing market crash. Housing data is used to support the narrative. The paper concludes that sudden changes in capital gains tax rates can cause formed bubbles to burst. Research recommends gradual changes in capital gains taxes rather than large one-time changes may be a better policy.



