This paper is superseded by WP 15-15 <p>The authors construct a quantitative equilibrium model of the housing market in … which an unanticipated increase in the supply of housing triggers default mortgages via its effect on house prices. The … decline in house prices creates an incentive to increase the consumption of housing space, but leverage makes it costly for …

Reverse mortgage loans (RMLs) allow older homeowners to borrow against housing wealth without moving. In spite of …

Supersedes Working Paper 13-27. Reverse mortgage loans (RMLs) allow older homeowners to borrow against housing wealth …

generations model, which incorporates characteristics of housing and the U.S. preferential tax treatment for owner …-occupied housing. Housing tax policy is found to have a substantial effect on how capital income should be taxed. Given the U ….S. preferential tax treatment for owner-occupied housing, the optimal capital income tax rate is close to zero, contrary to the high …