Land is back – it should be taxed, it can be taxed!

Op-Ed

A VoxEU article written by Alain Trannoy (EHESS) and co-authors about the optimal taxation of land (only in English).

March 22nd 2021

"Housing wealth is now between two and four times as large as GDP in many Western economies. This column reintroduces land and housing structures to the theory of optimal taxation, and finds that first-best taxation is achieved through a property tax on land and requires no tax on capital. Even absent land taxes, one can tax land indirectly and reach a Ramsey second best still with no tax on capital and positive housing rent taxes in the steady state."

►Read the full Vox EU article online

Scientific reference

► Bonnet , O, G Chapelle, A Trannoy and É Wasmer (2021), “Land is back, it should be taxed, it can be taxed”, European Economic Review.

Contact

► Alain Trannoy, Directeur d'études à l'EHESS

Previously issued

Press

In Spain, economic policy has been conducive and has benefited from favourable circumstances

Only in French - An op-ed by Cecilia García Peñalosa (CNRS, EHESS, AMSE) and Alain Trannoy (EHESS, AMSE) published in the newspaper Le Monde.

December 22nd 2025

Dialogues économiques

The True Price of CO₂

In 2024, a grim record was set: it was the hottest year ever recorded on Earth. The signs of climate upheaval are now visible to all, as global warming manifests itself in a rapid rise in extreme weather events. In theory, the solution is straightforward: we must stop burning fossil fuels. In practice, phasing out energy sources so firmly entrenched in contemporary societies is an immense challenge. To reduce CO₂ emissions, economists — trained in cost–benefit analysis — can help policymakers design strategies that are both effective and socially acceptable.

December 10th 2025

Press

Healers are easy targets

Only in French- An op-ed by Daniel Ventosa-Santaulària (CIDE), visiting professor at Aix-Marseille School of Economics, published in La Provence.

December 04th 2025