Housing, Collateral Constraints, and Fiscal Policy
This paper studies the preferential tax treatment of housing that can be observed in many industrialized countries. It provides a rationale for it by means of an optimal taxation approach, taking into account an important feature of housing, namely its usage as collateral. In a borrower-lender framework, where private loans are assumed to be non-enforceable and have to be collateralized by housing, optimal fiscal policy should disburden constrained borrowers by subsidizing their housing.
Anahtar Kelimeler:
Housing, collateral constraints, optimal fiscal policy
Housing, Collateral Constraints, and Fiscal Policy
This paper studies the preferential tax treatment of housing that can be observed in many industrialized countries. It provides a rationale for it by means of an optimal taxation approach, taking into account an important feature of housing, namely its usage as collateral. In a borrower-lender framework, where private loans are assumed to be non-enforceable and have to be collateralized by housing, optimal fiscal policy should disburden constrained borrowers by subsidizing their housing.
Keywords:
Housing, collateral constraints, optimal fiscal policy,
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- ISSN: 2146-6173
- Yayın Aralığı: Yılda 3 Sayı
- Başlangıç: 2012
- Yayıncı: Türkiye Ekonomi Kurumu Vakfı