Marekwica, Marcel; Schaefer, Alexander; Sebastian, Steffen - In: Journal of Economic Dynamics and Control 37 (2013) 6, pp. 1110-1125
creates potential for tax arbitrage. Specifically, investors can deduct mortgage interest payments from taxable income, while … with higher retirement savings choose higher loan-to-value ratios to exploit this tax arbitrage opportunity. However, many … households could benefit from more effectively taking advantage of tax arbitrage. …