Housing policy and the progressivity of income taxation

Chambers, Matthew; Garriga, Carlos; Schlagenhauf, Don E.

doi:10.1016/j.jmoneco.2009.10.007

Cited by 101 publications

(69 citation statements)

References 10 publications

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“…This is consistent with the mom-and-pop investors popular in rental markets and discussed by Chambers, Garriga, and Schlagenhauf (2009). However, there are also corporate landlords with the size and tools to diversify housing value risk.…”

Section: Real Estate Fundsupporting

confidence: 82%

Distributional Implications of Government Guarantees in Mortgage Markets

Gete

Zecchetto²

2017

The Review of Financial Studies

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We analyze the removal of the credit-risk guarantees provided by the governmentsponsored enterprises (GSEs) in a model with agents heterogeneous in income and house price risk. We find that wealth inequality increases, driven by higher mortgage spreads and housing rents. Housing holdings become more concentrated. Foreclosures fall. The removal benefits high-income households, while hurting low-and mid-income households (renters and highly leveraged mortgagors with conforming loans). GSE reform requires compensating transfers, sufficiently high elasticity of rental supply, or linking GSE reform with the elimination of the mortgage interest deduction. (JEL E51, H81, G21, R2) * We thank

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Section: Real Estate Fundsupporting

confidence: 82%

Distributional Implications of Government Guarantees in Mortgage Markets

Gete

Zecchetto²

2017

The Review of Financial Studies

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“…9 While our model shares the features of capital adjustment costs, exogenous interest rates and interregional labor mobility with the one-sector frameworks developed in Rappaport (2005) and Burda (2006), their focus is on wage convergence rather than on the reversal of migration flows. 10 We show that the reversal of migration flows is generated by the dynamics of residential construction and the price for housing services that we additionally examine in our two-sector framework. Moreover, whereas non-monotonic time paths of a region's population size may occur in models with increasing returns to scale, our framework explains nonmonotonic transitions despite constant returns to scale.…”

Section: Introductionmentioning

confidence: 85%

Reversal of migration flows: A fresh look at the German reunification

Grossmann

Schäfer

Steger

et al. 2017

Journal of International Economics

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We investigate the dynamic effects of interregional labor market integration on migration flows, capital formation, and the price for housing services. The co-evolution of these variables depends on initial conditions at the time of labor market integration. In an initially capital-poor economy, there may be a reversal of migration flows during the transition to the steady state, while housing costs are increasing over time. Although capital may accumulate while labor emigrates early in the transition, the causal effect of immigration on capital investments and housing costs is positive. We present new data on the evolution of net migration flows and rental rates for housing in East Germany after 1990. Our results are consistent with the presented evidence in the reverse migration scenario.

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“…5 Several papers in this area, such as Chambers, Garriga, and Schlagenhauf (2009);Floetotto, Kirker, and Stroebel (2016); Gervais (2002);Jeske, Krueger, and Mitman (2013); or Sommer and Sullivan (2015) analyze distributional effects of housing policies. This paper contributes to this literature in many aspects.…”

Section: Related Literaturementioning

confidence: 99%

“…This value is consistent with the range of 6%-10% standard deviation of annual house price growth across U.S. states reported by the FHFA since 1991. Chambers, Garriga, and Schlagenhauf (2009). Using the 1996 Property Owners and Managers Survey, they document that although the majority of rental housing is supplied by middle or wealthy households, 25% of the supply is owned by low-income households.…”

Section: Endogenous Parametersmentioning

confidence: 99%