Publication: On the User Cost and Home Ownership
dc.affiliation.dpto | UC3M. Departamento de Economía | es |
dc.contributor.author | Díaz, Antonia | es |
dc.contributor.author | Luengo Prado, María José | es |
dc.date.accessioned | 2014-05-23T12:01:14Z | |
dc.date.available | 2014-05-23T12:01:14Z | |
dc.date.issued | 2008-07 | es |
dc.description.abstract | This paper studies the differences in the cost of housing services for renters and homeowners and calculates the bias that results when we value owner-occupied housing services using a rental equivalence approach. Our framework is a life-cycle model with endogenous tenure choice with households facing idiosyncratic uninsurable earnings risk and housing price risk. We model houses as illiquid assets that provide collateral for loans. To analyze the impact of preferential housing taxation on the tenure choice and the bias, we consider a tax system that mimics that of the US economy. Namely, owner-occupied housing services are not taxed and mortgage interest payments are deductible. Through simulations, we show that a rental equivalence approach (relative to a user cost approach) overestimates the cost of housing services. The magnitude of the bias is very sensitive to both the income tax rate and the size of adjustment costs in the housing market. | en |
dc.description.status | Publicado | es |
dc.format.mimetype | application/pdf | |
dc.identifier.bibliographicCitation | Review of Economic Dynamics. (2008), 11 (3), p. 584-613 | en |
dc.identifier.doi | 10.1016/j.red.2007.12.002 | |
dc.identifier.issn | 1094-2025 | |
dc.identifier.publicationfirstpage | 584 | |
dc.identifier.publicationissue | 3 | |
dc.identifier.publicationlastpage | 613 | |
dc.identifier.publicationtitle | Review of Economic Dynamics | en |
dc.identifier.publicationvolume | 11 | |
dc.identifier.uri | https://hdl.handle.net/10016/4937 | |
dc.language.iso | eng | en |
dc.publisher | Elsevier | en |
dc.relation.publisherversion | http://dx.doi.org/10.1016/j.red.2007.12.002 | en |
dc.rights | © 2007 Elsevier Inc. | en |
dc.rights.accessRights | open access | en |
dc.subject.eciencia | Economía | es |
dc.subject.other | Consumption | en |
dc.subject.other | Durables | en |
dc.subject.other | Down payments | en |
dc.subject.other | Housing | en |
dc.subject.other | User cost | en |
dc.title | On the User Cost and Home Ownership | en |
dc.type | research article | * |
dc.type.hasVersion | AM | * |
dc.type.review | PeerReviewed | en |
dspace.entity.type | Publication |
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