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The Sensitivity of Homeowner Leverage to the Deductibility of Home Mortgage Interest

Hendershott, Patric H. - 2005

Mortgage interest tax deductibility is needed to treat debt and equity financing of homes equally. Countries that limit … the financing response to a legislative change is complicated by the fact that lenders restrict mortgage debt to the value …

Persistent link: https://www.econbiz.de/10012467190

Estimating the Elasticity of Intertemporal Substitution Using Mortgage Notches

Best, Michael Carlos - 2018

Elasticity of Intertemporal Substitution (EIS). In the UK, the mortgage interest rate features discrete jumps - notches - at …

Persistent link: https://www.econbiz.de/10012480601

Household Leverage and the Deductibility of Home Mortgage Interest : Evidence from UK House Purchasers

Hendershott, Patric H. - 2002

During the last quarter century, mortgage interest deductibility has been gradually phased out. In 1974 a ceiling was … set on the size of the mortgage eligible for interest deductibility (œ30,000 since 1983) and, beginning in 1993, the …. The penalty variables depend on the predicted probability of having a loan that exceeds the ceiling, the market mortgage …

Persistent link: https://www.econbiz.de/10012469502

Household Debt Overhang Did Hardly Cause a Larger Spending Fall during the Financial Crisis in Australia

Svensson, Lars E. O. - National Bureau of Economic Research - 2021

levels of outstanding mortgage debt (Dynan, 2012) - seems to be taken for granted by macroprudential authorities in several …

Persistent link: https://www.econbiz.de/10012533325

Price Discrimination and Mortgage Choice

Coen, Jamie; Kashyap, Anil K.; Rostom, May - National Bureau of Economic Research - 2023

We characterize the large number of mortgage offers for which people qualify in the United Kingdom. Very few pick the … dispersion in the mortgage menu is consistent with banks price discriminating for borrowers who might pick poorly, while …

Persistent link: https://www.econbiz.de/10014372409

Housing Price Volatility and Downsizing in Later Life

Banks, James - 2007

In this paper, we modeled several types of housing transitions of the elderly in two countries -- Britain and the United States. One important form of these transitions involves downsizing of housing consumption, the importance of which among older households is still debated. This downsizing...

Persistent link: https://www.econbiz.de/10012465150

How Do House Prices Affect Consumption? Evidence From Micro Data

Campbell, John Y. - 2005

Housing is a major component of wealth. Since house prices fluctuate considerably over time, it is important to understand how these fluctuations affect households' consumption decisions. Rising house prices may stimulate consumption by increasing households' perceived wealth, or by relaxing...

Persistent link: https://www.econbiz.de/10012467144

Evidence on Rationality in Commercial Property Markets : An Interpretation and Critique

Hendershott, Patric - 2005

Periodic sharp sustained increases and then reversals in asset prices lead many to posit irrational price bubbles. The general case for irrationality is that real asset prices simply have moved too much given the future real cash flows the assets are reasonably likely to produce. A corollary for...

Persistent link: https://www.econbiz.de/10012467354

Investor Rationality : Evidence from UK Property Capitalization Rates

Hendershott, Patric H. - 2003

Recent analyses have suggested the irrationality of investors in Australian and U.S. office properties. More specifically, investors have failed to raise capitalization rates sufficiently at rental cyclical peaks to account for the obvious mean reversion in real rents and thus have significantly...

Persistent link: https://www.econbiz.de/10012468803

The Effect of House Prices on Household Borrowing : A New Approach

Cloyne, James - 2017

We investigate the effect of house prices on household borrowing using administrative mortgage data from the UK and a …

Persistent link: https://www.econbiz.de/10012453850