Replication data for: Implications of US Tax Policy for House Prices, Rents, and Homeownership
Principal Investigator(s): View help for Principal Investigator(s) Kamila Sommer; Paul Sullivan
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| all_aer_replication_files | 10/12/2019 03:32:AM | ||
|
|
text/plain | 14.6 KB | 10/11/2019 11:32:PM |
Project Citation:
Sommer, Kamila, and Sullivan, Paul. Replication data for: Implications of US Tax Policy for House Prices, Rents, and Homeownership. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113032V1
Project Description
Summary:
View help for Summary
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.
Scope of Project
JEL Classification:
View help for JEL Classification
H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
H31 Fiscal Policies and Behavior of Economic Agents: Household
R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
R31 Housing Supply and Markets
H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
H31 Fiscal Policies and Behavior of Economic Agents: Household
R21 Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
R31 Housing Supply and Markets
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.