Investment in Housing in the United States : A Portfolio Approach; The Possible Effects of Changes in Tax Policy /

It is well known that the preferential tax treatment of housing induces an inefficient allocation of saving and investment. This paper analyzes, in a portfolio framework, how eliminating the deductibility of mortgage interest payments for federal income tax purposes might affect investment in housin...

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Bibliografiske detaljer
Hovedforfatter: Andersson, Krister
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 1990.
Serier:IMF Working Papers; Working Paper ; No. 1990/099
Online adgang:Full text available on IMF
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100 1 |a Andersson, Krister. 
245 1 0 |a Investment in Housing in the United States :   |b A Portfolio Approach; The Possible Effects of Changes in Tax Policy /  |c Krister Andersson. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1990. 
300 |a 1 online resource (38 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a It is well known that the preferential tax treatment of housing induces an inefficient allocation of saving and investment. This paper analyzes, in a portfolio framework, how eliminating the deductibility of mortgage interest payments for federal income tax purposes might affect investment in housing. Expected rate of return and risk is estimated for three assets, bonds, housing, and stocks. The possibility that assets are imperfect substitutes is explicitly recognized in one section of the paper. The model suggests that the share of housing is likely to decrease by 4 to 9 percentage points if mortgage interest payments are not deductible. This may call for careful phasing of the change in policy. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1990/099 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1990/099/001.1990.issue-099-en.xml  |z IMF e-Library