University of Isfahan Urban Economics 2588-4867 5 2 2020 10 22 Identifying the Factors Affecting the Tax Rate on Vacant Houses in the Iranian Economy: Interpretive Structural Modeling Approach Identifying the Factors Affecting the Tax Rate on Vacant Houses in the Iranian Economy: Interpretive Structural Modeling Approach 1 18 26111 10.22108/ue.2021.128202.1184 FA Mehdi Razavi Professor of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran Hojjat Izadkhasti Assistant of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran Vahide Dastjerdi Master of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran Journal Article 2021 04 21 Vacant houses are one of the most important forms of speculation in the housing sector, in which owners of the vacant houses refuse to supply their houses. This has led to fluctuations in housing prices and an increase in vacancy rates relative to the normal state. One of the tools to control profitability and increase the supply of vacant housing is to impose a tax on these units at optimal rates. In this regard, this study identifies the factors affecting the tax rate on vacant housing by using the “Interpretive Structural Modeling” (ISM) method. In the hierarchical system, the variables that are in the third level have the greatest effect on the variables of levels two and one. Level two variables are affected by the third level variables and affect the first level variables. The first level variables themselves are more affected than other variables. In the obtained hierarchical system, variables also affected the tax rate on vacant housing at three levels. The variables of liquidity changes, real exchange rate, interest rate on loans granted by the housing sector, at the most basic level, affect the variables of higher levels and have a greater impact on the tax rate on vacant houses. Competitive housing markets, including the coin market and the stock market, along with price variables including inflation, housing price index, and land price changes, are at the first level and are themselves more affected by fundamental macro variables.<br /><strong>JEL Classification:</strong> H39, H71, R38 Vacant houses are one of the most important forms of speculation in the housing sector, in which owners of the vacant houses refuse to supply their houses. This has led to fluctuations in housing prices and an increase in vacancy rates relative to the normal state. One of the tools to control profitability and increase the supply of vacant housing is to impose a tax on these units at optimal rates. In this regard, this study identifies the factors affecting the tax rate on vacant housing by using the “Interpretive Structural Modeling” (ISM) method. In the hierarchical system, the variables that are in the third level have the greatest effect on the variables of levels two and one. Level two variables are affected by the third level variables and affect the first level variables. The first level variables themselves are more affected than other variables. In the obtained hierarchical system, variables also affected the tax rate on vacant housing at three levels. The variables of liquidity changes, real exchange rate, interest rate on loans granted by the housing sector, at the most basic level, affect the variables of higher levels and have a greater impact on the tax rate on vacant houses. Competitive housing markets, including the coin market and the stock market, along with price variables including inflation, housing price index, and land price changes, are at the first level and are themselves more affected by fundamental macro variables.<br /><strong>JEL Classification:</strong> H39, H71, R38 https://ue.ui.ac.ir/article_26111_0ee44f21e1d66b799a6e315ad8210fb9.pdf