On the macroeconomic and distributional effects of housing taxation 公开 Deposited

Alpha creator Series Subject Abstract
  • In most developed countries, housing receives preferential tax treatment relative to other assets. In particular (i) the housing services provided by owner-occupied housing (generally referred to as imputed rents) are untaxed and (ii) mortgage interest payments reduce taxable income. The potential economic distortions resulting from the unique treatment of housing may be substantial, especially in light of the fact that residential capital accounts for more than half of the assets in the U.S. In particular, this tax treatment distorts the households' portfolio composition, their saving rates and their tenure choice. In this paper we build a general equilibrium model populated by heterogeneous agents subject to idiosyncratic risk. We use this framework to quantitatively assess the macroeconomic and distributional distortions introduced by this preferential tax treatment. We also study the effects of alternative tax schemes which could correct the current system's bias.
Corporate name
  • Federal Reserve Bank of Minneapolis. Research Department.
Date created
  • 2003-05
Date modified
  • 04/10/2018
Resource type

关联

属于 Collection:
最新修改

可下载的内容

下载PDF文件

Zipped Files

Download a zip file that contains all the files in this work.

单件