Working Paper: NBER ID: w1036
Authors: Patric H. Hendershott
Abstract: This paper contains three parts: a discussion of the tax advantages of household capital (owner-occupied housing and consumer durables) relative to business capital (structures and producers durables) ,an analysis of alternative mechanisms for reducing these advantages (including the use of the mechanisms since 1965) ,and a brief enumeration of various attempts to lower the residential mortgage rate relative to other debt yields that have been employed during the past two decades or are currently being advocated.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| government tax policies (H29) | allocation of capital (G31) |
| tax advantages for owner-occupied housing and consumer durables (R21) | demand for these assets (G19) |
| tax advantages for owner-occupied housing and consumer durables (R21) | misallocation of capital (E22) |
| absence of taxation on returns from owner-occupied housing (H29) | increased demand for residential capital (R21) |
| removing tax advantages (H26) | more efficient allocation of capital (G31) |