Abstract
We present a comprehensive model of household tenure choice that guides our review of the literature on the impacts of tax and subsidy policies and focuses our critiques of various methodologies. We discuss the impacts on the likelihood of homeownership of house price capitalization and individuals' choices of household structure, loan-to-value ratio, and wealth accumulation. We argue that the best empirical studies use panel household-level data and a large set of measures of housing taxes and subsidies, macroeconomic variables, and household characteristics. We review three studies that illustrate the benefits and challenges of modeling the homeownership decision across countries.
| Original language | English |
|---|---|
| Pages (from-to) | 193-210 |
| Number of pages | 18 |
| Journal | Journal of Housing Research |
| Volume | 24 |
| Issue number | 2 |
| Publication status | Published - 2015 |
Bibliographical note
We thank the National Association of Home Builders for supporting the project‘‘International Differences in Homeownership and Housing Tax Rules’’ and Ross Brater for his research assistance.