Sommer, Kamila
Implications of US tax policy for house prices, rents and homeownership / by Kamila Sommer and Paul Sullivan .-- , 2018
Disponible en formato electrónico a través de la Biblioteca del IEF.
This paper studies the impact of the mortgage interest tax deduction on equilibrium house prices, rents, homeownership, and welfare. We build a dynamic model of the housing market that features a realistic progressive tax system in which owner-occupied housing services are tax-exempt and mortgage interest payments are tax-deductible. We simulate the effect of tax reform on the housing market. Eliminating the mortgage interest deduction causes house prices to decline, increases homeownership, decreases mortgage debt, and
improves welfare. Our findings challenge the widely held view that repealing the preferential tax treatment of mortgages would depress homeownership.
POLITICA FISCAL
VIVIENDA
ARRENDAMIENTO URBANO
PRECIOS
ESTADOS UNIDOS
MODELOS ECONOMETRICOS
Sullivan, Paul
The American Economic Review 0002-8282 v. 108, n. 2, February 2018, p. 241-274
Implications of US tax policy for house prices, rents and homeownership / by Kamila Sommer and Paul Sullivan .-- , 2018
Disponible en formato electrónico a través de la Biblioteca del IEF.
This paper studies the impact of the mortgage interest tax deduction on equilibrium house prices, rents, homeownership, and welfare. We build a dynamic model of the housing market that features a realistic progressive tax system in which owner-occupied housing services are tax-exempt and mortgage interest payments are tax-deductible. We simulate the effect of tax reform on the housing market. Eliminating the mortgage interest deduction causes house prices to decline, increases homeownership, decreases mortgage debt, and
improves welfare. Our findings challenge the widely held view that repealing the preferential tax treatment of mortgages would depress homeownership.
POLITICA FISCAL
VIVIENDA
ARRENDAMIENTO URBANO
PRECIOS
ESTADOS UNIDOS
MODELOS ECONOMETRICOS
Sullivan, Paul
The American Economic Review 0002-8282 v. 108, n. 2, February 2018, p. 241-274