Does favorable tax-treatment of housing reduce non-housing investment?

• 成果类型: Article
• 署名作者: Broadbent, B; Kremer, M
• 署名单位: Harvard University; Columbia University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(00)00125-0
• 发表日期: 2001
• 页码: 369-391
• 关键词: housing; taxation

摘要

It is often argued that low tax rates on owner-occupied housing divert investment from non-housing capital, like equipment and R&D. This paper demonstrates that if people are heterogeneous in their propensity to save, and if there are constraints on borrowing, favorable tax treatment of owner-occupied housing up to a certain value can increase non-housing investment. This is because low housing taxes encourage renters to become owner-occupiers, leading existing owner-occupiers to shift their portfolio of other assets from rental housing to non-housing capital. (C) 2001 Elsevier Science BY All rights reserved.