Housing Tax Policy and Homeowner Mobility
Autor(a) principal: | |
---|---|
Data de Publicação: | 1990 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/84945 |
Resumo: | This paper develops a model of "trading up" which accommodates the consumption and investment aspects of homeownership within an intertemporal framework, and which also incorporates a detailed description of the provisions of housing taxation. Numerical simulations suggest that the optimal timing of trading up is anticipated and both intertemporal utility and the value of uptrading are reduced under either the elimination of mortgage and property tax deductibility, or the taxation imputed rental income. However, the elimination of the deductibility of mortgage interest payments has the largest effects in terms of trading up as well as utility losses and the resuctions in the value of uptrading. In turn, the taxation of housing capital gains may delay the optimal timing of uptrading. Under the different policy scenarios there is a possibility that policy changes will lock-in homeowners at their current home. In fact, while the intertemporal utility from uptrading is, under the status quo, well above the utility derived from staying at the current home, under the alternative scenarios the utility differential is dramatically reduced. For example, even though inflation and housing appreciation tend to have a positive effect on the value of uptrading under the current tax system, excessive inflation and excessively high reel mortgage interest rates may lock - in homeowners at their current home. |
id |
RCAP_0813393d24b7c563182eb13a6b01b7b6 |
---|---|
oai_identifier_str |
oai:run.unl.pt:10362/84945 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Housing Tax Policy and Homeowner MobilityThis paper develops a model of "trading up" which accommodates the consumption and investment aspects of homeownership within an intertemporal framework, and which also incorporates a detailed description of the provisions of housing taxation. Numerical simulations suggest that the optimal timing of trading up is anticipated and both intertemporal utility and the value of uptrading are reduced under either the elimination of mortgage and property tax deductibility, or the taxation imputed rental income. However, the elimination of the deductibility of mortgage interest payments has the largest effects in terms of trading up as well as utility losses and the resuctions in the value of uptrading. In turn, the taxation of housing capital gains may delay the optimal timing of uptrading. Under the different policy scenarios there is a possibility that policy changes will lock-in homeowners at their current home. In fact, while the intertemporal utility from uptrading is, under the status quo, well above the utility derived from staying at the current home, under the alternative scenarios the utility differential is dramatically reduced. For example, even though inflation and housing appreciation tend to have a positive effect on the value of uptrading under the current tax system, excessive inflation and excessively high reel mortgage interest rates may lock - in homeowners at their current home.Nova SBERUNNakagami, YasuhiroPereira, Alfredo M.2019-10-21T09:05:53Z1990-011990-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/84945engNakagami, Yasuhiro and Pereira, Alfredo M., Housing Tax Policy and Homeowner Mobility (January, 1990). FEUNL Working Paper Series No. 139info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:37:50Zoai:run.unl.pt:10362/84945Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:36:32.500682Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Housing Tax Policy and Homeowner Mobility |
title |
Housing Tax Policy and Homeowner Mobility |
spellingShingle |
Housing Tax Policy and Homeowner Mobility Nakagami, Yasuhiro |
title_short |
Housing Tax Policy and Homeowner Mobility |
title_full |
Housing Tax Policy and Homeowner Mobility |
title_fullStr |
Housing Tax Policy and Homeowner Mobility |
title_full_unstemmed |
Housing Tax Policy and Homeowner Mobility |
title_sort |
Housing Tax Policy and Homeowner Mobility |
author |
Nakagami, Yasuhiro |
author_facet |
Nakagami, Yasuhiro Pereira, Alfredo M. |
author_role |
author |
author2 |
Pereira, Alfredo M. |
author2_role |
author |
dc.contributor.none.fl_str_mv |
RUN |
dc.contributor.author.fl_str_mv |
Nakagami, Yasuhiro Pereira, Alfredo M. |
description |
This paper develops a model of "trading up" which accommodates the consumption and investment aspects of homeownership within an intertemporal framework, and which also incorporates a detailed description of the provisions of housing taxation. Numerical simulations suggest that the optimal timing of trading up is anticipated and both intertemporal utility and the value of uptrading are reduced under either the elimination of mortgage and property tax deductibility, or the taxation imputed rental income. However, the elimination of the deductibility of mortgage interest payments has the largest effects in terms of trading up as well as utility losses and the resuctions in the value of uptrading. In turn, the taxation of housing capital gains may delay the optimal timing of uptrading. Under the different policy scenarios there is a possibility that policy changes will lock-in homeowners at their current home. In fact, while the intertemporal utility from uptrading is, under the status quo, well above the utility derived from staying at the current home, under the alternative scenarios the utility differential is dramatically reduced. For example, even though inflation and housing appreciation tend to have a positive effect on the value of uptrading under the current tax system, excessive inflation and excessively high reel mortgage interest rates may lock - in homeowners at their current home. |
publishDate |
1990 |
dc.date.none.fl_str_mv |
1990-01 1990-01-01T00:00:00Z 2019-10-21T09:05:53Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/84945 |
url |
http://hdl.handle.net/10362/84945 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Nakagami, Yasuhiro and Pereira, Alfredo M., Housing Tax Policy and Homeowner Mobility (January, 1990). FEUNL Working Paper Series No. 139 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Nova SBE |
publisher.none.fl_str_mv |
Nova SBE |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799137983446646784 |