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Apocalypse Now? Fundamental Tax Reform and Residential Housing Values

Author

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  • Donald Bruce
  • Douglas Holtz-Eakin

Abstract

Using a simulation model crafted to integrate the short-run and long-term impacts of tax" reform on the housing market, we find modest impacts from fundamental reform of the Federal" income tax. These results suggest that concerns over the impact of tax reform on housing values" and household net worth are overstated. To the extent that reform is otherwise desirable drastic effects on the housing market should not stand as an impediment to reform."

Suggested Citation

  • Donald Bruce & Douglas Holtz-Eakin, 1997. "Apocalypse Now? Fundamental Tax Reform and Residential Housing Values," NBER Working Papers 6282, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:6282
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    References listed on IDEAS

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    1. Martin Feldstein, 1995. "The Effect of a Consumption Tax on the Rate of Interest," NBER Working Papers 5397, National Bureau of Economic Research, Inc.
    2. Richard K. Green & Patric H. Hendershott & Dennis R. Capozza, 1996. "Taxes, Mortgage Borrowing and House Prices," Wisconsin-Madison CULER working papers 96-06, University of Wisconsin Center for Urban Land Economic Research.
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    Cited by:

    1. Hal Martin, 2018. "The Impact of the Tax Cuts and Jobs Act on Local Home Values," Working Papers (Old Series) 1806, Federal Reserve Bank of Cleveland.
    2. Lastrapes, William D. & Potts, Todd B., 2006. "Durable goods and the forward-looking theory of consumption: Estimates implied by the dynamic effects of money," Journal of Economic Dynamics and Control, Elsevier, vol. 30(8), pages 1409-1430, August.
    3. G. Carvalho, Pedro & Ribeiro, Alexandra, 2007. "Acnowledging for spatial effects in the Portuguese housing markets," MPRA Paper 6132, University Library of Munich, Germany.
    4. Todd Sinai & Joseph Gyourko, 2004. "The (Un)changing Geographical Distribution of Housing Tax Benefits: 1980–2000," NBER Chapters, in: Tax Policy and the Economy, Volume 18, pages 175-208, National Bureau of Economic Research, Inc.
    5. Lastrapes, William D., 2002. "The Real Price of Housing and Money Supply Shocks: Time Series Evidence and Theoretical Simulations," Journal of Housing Economics, Elsevier, vol. 11(1), pages 40-74, March.
    6. Kelly D. Edmiston & Kenneth Spong, 2012. "Tax Incentives for Homeownership and the Provision of Local Public Services," Public Finance Review, , vol. 40(1), pages 116-144, January.
    7. Tito Boeri, 2005. "An Activating Social Security System," De Economist, Springer, vol. 153(4), pages 375-397, December.

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    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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