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We analyze by far the most extensive data base yet employed in estimating capitalizationquot; of below-market interest rates into asset prices: nearly 300,000 sales of owner-occupied homes inquot; Sweden from 1981 to 1993 with 40,000 including government subsidized interest rates. Ourquot;...
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endogenous component caused by variations in the inflation rate. Because housing is the tax-favored asset, the higher are nominal …
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Oswald hypothesizes that regions and countries with high homeownership rates will experience higher natural rates of … unemployment and that rising homeownership in OECD countries since the 1960s provides a key explanation for the rise in the natural … have significantly slower exits from unemployment. Overall, homeownership does not increase unemployment. Finally, in line …
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Owner-occupied housing is said to be favored in the tax code because mortgage interest and property taxes can be deducted in the computation of one's income tax base in spite of the fact that the returns from owner- occupied housing = not taxed. The special tax treatment reduces the user cost of...
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