| Abstract: | In Korea, there exists a unique form of housing rental called the “Chun-Sae” (C.S.). The purpose of this paper is to provide a theoretical model for tax-based tenure choice between ownership and rental, to develop a model to evaluate the C.S. price, and to seek an explanation for the currently observed anomaly (i.e., a wide disparity between the present value of C.S. and the market price of house). The model is also found to be useful in evaluating the effectiveness of capital gain tax on a second house. [210] |
