Essays on housing tax policy and discrimination in the mortgage market

详细信息   

• 作者：Martin ; William Harold
• 学历：Doctor
• 年：2015
• 关键词：Social sciences ; Correspondence experiment ; Deadweig
• 导师：Schnier,Kurt E.
• 毕业院校：Georgia State University
• Department：Economics
• 专业：Economics
• ISBN：9781321776294
• CBH：3704933
• Country：USA
• 语种：English
• FileSize：3102800
• Pages：142

文摘

This dissertation explores the impact of tax policy and institutions on decisions in the market for housing. Two essays address the impact of tax policy on home values,neighborhood accessibility,and public finance;a third essay presents an experimental test for discrimination in mortgage lending. The first essay is joint work with Andrew Hanson. In it,we estimate the sensitivity of mortgage interest deducted on federal tax returns to the availability of the Mortgage Interest Deduction (MID). Our primary results show that for every one percentage point increase in the tax rate that applies to deductibility,the amount of mortgage interest deducted increases by $303-590. We also compute the elasticity of mortgage interest and deadweight loss of the tax policy. The second essay simulates changes to average home prices in twenty-seven cities that would result were the MID reformed. I use local variation in housing parameters to simulate home price changes for three different reforms: eliminating the MID,converting the MID to a fifteen percent credit,and capping the MID at fifteen percent. City price changes vary in response to a single policy by as much as 12.8 percentage points. Spatial variation within cities is also notable,with areas high in income experiencing steeper price declines and areas of lower income experiencing shallow declines. To varying degrees,each reform reduces price differences across neighborhoods,making more neighborhoods affordable to any given income class. The third essay is joint work with Andrew Hanson,Zack Hawley,and Bo Liu. We design and implement an experimental test for differential response by Mortgage Loan Originators (MLOs) to requests for information about loans. Our e-mail correspondence experiment is designed to analyze differential treatment by client race and credit score. Our results show net discrimination of 1.8 percent by MLOs through non-response. We also find that MLOs offer more details about loans and are more likely to send follow up correspondence to whites. The effect of being African American on MLO response is equivalent to the effect of having a credit score that is 71 points lower.