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On some fiscal effects on mortgage debt growth in the EU

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  • Wolswijk, Guido

Abstract

This paper analyses some fiscal aspects of mortgage debt in the EU. It first describes the main fiscal instruments that governments use to affect mortgage-financed home-ownership. In the empirical part, real mortgage debt growth is analysed for 15 EU countries using pooled regressions. Fiscal effects are included via after-tax interest rates. Other factors shown to be relevant for mortgage debt growth are house prices, financial deregulation, and stock markets while the effects of household income and inflation are less evident. Finally, the role of structural fiscal measures in reducing housing market volatility is highlighted. JEL Classification: E51, E62, G21, H31, R21

Suggested Citation

  • Wolswijk, Guido, 2005. "On some fiscal effects on mortgage debt growth in the EU," Working Paper Series 526, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:2005526
    Note: 339143
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    File URL: https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp526.pdf
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    Cited by:

    1. Eric Hillebrand & Faik Koray, 2008. "Interest rate volatility and home mortgage loans," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2381-2385.
    2. Ph. Du Caju & M. Emiris & Ch. Piette & M.-D. Zachary, 2018. "Shedding new light on the mortgage debt of households in Belgium," Economic Review, National Bank of Belgium, issue i, pages 97-114, June.
    3. Kok, Christoffer & Lichtenberger, Jung-Duk, 2007. "Mortgage interest rate dispersion in the euro area," Working Paper Series 733, European Central Bank.

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    More about this item

    Keywords

    income tax; interest deductibility; loans; mortgage credit; tax policy;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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