THE MORTGAGE INTEREST DEDUCTION AND ITS IMPACT ON HOMEOWNERSHIP DECISIONS

• 成果类型: Article
• 署名作者: Hilber, Christian A. L.; Turner, Tracy M.
• 署名单位: University of London; London School Economics & Political Science; Kansas State University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00427
• 发表日期: 2014-10
• 页码: 618-637
• 关键词: housing decisions; tax deductibility; metropolitan-area; UNITED-STATES; income; taxation; households; benefits; systems; MODEL

摘要

This paper examines the impact of the combined U.S. state and federal mortgage interest deduction (MID) on homeownership attainment, using data from 1984 to 2007 and exploiting variation in the subsidy arising from changes in the MID within and across states over time. We test whether capitalization of the MID into house prices offsets the positive effect on homeownership. We find that the MID boosts homeownership attainment only of higher-income households in less tightly regulated housing markets. In more restrictive places, an adverse effect exists. The MID is an ineffective policy to promote homeownership and improve social welfare.