Mortgage loans are a striking example of a persistent nominal rigidity. As a result, under incomplete markets, monetary … policy affects decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt. Observed …

Are households more likely to be homeowners when “housing risk” is higher? We show that home-ownership rates and loan … disentangle the contributions of high price levels from high volatilities by building a life-cycle model of home-ownership choices …. We find that higher price levels can explain most of the lower home-ownership. Higher risk in the model leads to slightly …

This paper examines the impact of the combined U.S. state and federal mortgage interest deduction (MID) on … homeownership attainment, using data from 1984 to 2007 and exploiting variation in the subsidy across states, over time and due to … inter-state moves. We test whether capitalization of the MID into house prices offsets the positive effect on homeownership …

(i) homeowners are more likely to invest in social capital than renters and (ii) the positive link between homeownership …

adverse consequences for a wide range of policies such as intergovernmental aid or the mortgage interest deduction. …

are controlled for. However, the black-white homeownership gap disappears if differences in own and parental wealth and in …

Homeownership is heavily subsidized in many countries mainly through the tax code. The adverse effects of lenient tax … instrumental variables we find no evidence of positive externalities from neighbourhood homeownership rate. This result is robust …

policies such as intergovernmental aid or the mortgage interest deduction …