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obtain 8% and 1%. Dynamic scoring for the EU-14 shows that 54% of a labor tax cut and 79% of a capital tax cut are self-financing …We compare Laffer curves for labor and capital taxation for the US, the EU-14 and individual European countries, using … US can increase tax revenues by 30% by raising labor taxes and by 6% by raising capital income taxes. For the EU-14 we …
Persistent link: https://www.econbiz.de/10012463307
European nations substitute between employment protection regulations and labor market expenditures (e.g., unemployment … adjustments than other labor insurance mechanisms. Venture capital and private equity investors are especially sensitive to these … labor adjustment costs. Nations favoring labor expenditures as the mechanism for providing worker insurance developed …
Persistent link: https://www.econbiz.de/10012463023
This paper uses an assignment model to understand the cross section of house prices within a metro area. Movers' demand for housing is derived from a lifecycle problem with credit market frictions. Equilibrium house prices adjust to assign houses that differ by quality to movers who differ by...
Persistent link: https://www.econbiz.de/10012460934
Persistent link: https://www.econbiz.de/10012477126
A model is developed and utilized in this paper to value a life of loan interest rate cap on an ARM that reprices monthly. The value of the cap is seen to depend importantly on both the slope of the term structure and the variance of the one month rate. However, the cap value is not sensitive to...
Persistent link: https://www.econbiz.de/10012477561
In this paperwe examine the household's option to prepay or call a standard fixed-rate mortgage. Results based on simulation indicate that the value of this option is sensitive to the expected path of interest rates, the variation around that path, risk aversion and refinancing costs....
Persistent link: https://www.econbiz.de/10012477681
. If the interest rate rises,the homeowner has a nominal capital gain, since his loan is then at a below market interest ….This paper is an attempt to measure the dependence of the duration of mortgages on the implicit unrealized capital gain of …
Persistent link: https://www.econbiz.de/10012477851
The paper begins with the development of models explaining the mortgage refinancing and assumption decisions of households Having identified the economic variables influencing these decisions, we then simulate the models for different values to determine under what conditions households will...
Persistent link: https://www.econbiz.de/10012478190
This paper measures the impact of nonassumable, fixed-rate, long-term mortgage financing on household mobility and … during the l96l7l period and utilized this type of financing would not have moved until the 1975-77 period. And this is in … between current mortgage rates and those existing in the19705 and the resultant huge capital gains on existing mortgages does …
Persistent link: https://www.econbiz.de/10012478360
During the Last three years mortgage rates have risen relative to yields on comparable maturity bonds. The questions addressed in the present paper are what is the extent of this increase and to what is it attributable? We find the increase between early 198 and early 1981 in coupon rates on...
Persistent link: https://www.econbiz.de/10012478377