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Mortgage interest deductibility and housing prices

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Author Info
Stephen G. Cecchetti
Peter Rupert

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Abstract

An analysis of how implementing a flat tax on income and ending the deductibility of mortgage interest payments would affect housing prices. The authors show that, to the extent prices decline, higher-income households would bear most of the impact, but increases in the value of their other assets might mitigate the drop in the price of their homes.

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File URL: http://www.clevelandfed.org/Research/commentary/1996/020196.htm
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Publisher Info
Article provided by Federal Reserve Bank of Cleveland in its journal Economic Commentary.

Volume (Year): (1996)
Issue (Month): Feb 1 ()
Pages:
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Handle: RePEc:fip:fedcec:y:1996:i:feb1

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Related research
Keywords: Housing ; Mortgages;

Cited by:
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  1. Richard Voith & Joseph Gyourko, 2000. "Capitalization of federal taxes, the relative price of housing, and urban form: density and sorting effects," Working Papers 00-12, Federal Reserve Bank of Philadelphia. [Downloadable!]
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This page was last updated on 2009-7-4.


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