Implications of U . S . Tax Policy for House Prices , Rents and Homeownership ∗

  title={Implications of U . S . Tax Policy for House Prices , Rents and Homeownership ∗},
  author={K Sommer and Paul Sullivan},
This paper studies the impact of the preferential tax treatment of housing, including the mortgage interest deduction, on equilibrium house prices, rents, and homeownership. We build a dynamic model of housing tenure choice that features a realistic progressive tax system in which owner-occupied housing services are tax-exempt, and mortgage interest payments and property taxes are tax deductible. We simulate the effect of various tax reform proposals on the housing market, and find that… CONTINUE READING


Publications referenced by this paper.
Showing 1-10 of 32 references

The long slump

H. Hansmann
The American Economic Review • 2011

Do liquidity constraints vary over time ? Evidence from survey and panel data : note

G. Fissel, T. Jappelli
Journal of Money , Credit and Banking • 2010

Schlagenhauf , “ Housing policy and the progressivity of income taxation

S. Chatterjee, B. Eyigungor
Journal of Monetary Economics • 2009

The loan structure and housing tenure decisions in an equilibrium model of mortgage choice

M. Chambers, C. Garriga, D. E. Schlagenhauf
Review of Economic Dynamics • 2009

and D . Schlagenhauf , “ Accounting for changes in the homeownership rate

C. Garriga
International Economic Review • 2009

Similar Papers

Loading similar papers…