Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark

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Standard

Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark. / Gruber, Jonathan; Jensen, Amalie Sofie; Kleven, Henrik.

I: American Economic Journal: Economic Policy, Bind 13, Nr. 2, 2021, s. 273-303.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Gruber, J, Jensen, AS & Kleven, H 2021, 'Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark', American Economic Journal: Economic Policy, bind 13, nr. 2, s. 273-303. https://doi.org/10.1257/pol.20170366

APA

Gruber, J., Jensen, A. S., & Kleven, H. (2021). Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark. American Economic Journal: Economic Policy, 13(2), 273-303. https://doi.org/10.1257/pol.20170366

Vancouver

Gruber J, Jensen AS, Kleven H. Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark. American Economic Journal: Economic Policy. 2021;13(2):273-303. https://doi.org/10.1257/pol.20170366

Author

Gruber, Jonathan ; Jensen, Amalie Sofie ; Kleven, Henrik. / Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark. I: American Economic Journal: Economic Policy. 2021 ; Bind 13, Nr. 2. s. 273-303.

Bibtex

@article{8d1e4569967e4505a46910f37dbc3389,
title = "Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark",
abstract = "Using a major reform which scaled back the mortgage interest deduction for middle- and high-income households in Denmark, we study how tax subsidies affect housing decisions. We present four main findings. First, the mortgage deduction has a precisely estimated zero effect on homeownership for high- and middle-income households. Second, the mortgage deduction has a clear effect on housing demand at the intensive margin, inducing homeowners to buy larger and more expensive houses. Third, the deduction has sizeable effects on household financial decisions, inducing them to increase indebtedness. Finally, the reduction of the tax subsidy lowered equilibrium house prices. ",
author = "Jonathan Gruber and Jensen, {Amalie Sofie} and Henrik Kleven",
year = "2021",
doi = "10.1257/pol.20170366",
language = "English",
volume = "13",
pages = "273--303",
journal = "American Economic Journal: Economic Policy",
issn = "1945-7731",
publisher = "American Economic Association",
number = "2",

}

RIS

TY - JOUR

T1 - Do People Respond to the Mortgage Interest Deduction? Quasi-Experimental Evidence from Denmark

AU - Gruber, Jonathan

AU - Jensen, Amalie Sofie

AU - Kleven, Henrik

PY - 2021

Y1 - 2021

N2 - Using a major reform which scaled back the mortgage interest deduction for middle- and high-income households in Denmark, we study how tax subsidies affect housing decisions. We present four main findings. First, the mortgage deduction has a precisely estimated zero effect on homeownership for high- and middle-income households. Second, the mortgage deduction has a clear effect on housing demand at the intensive margin, inducing homeowners to buy larger and more expensive houses. Third, the deduction has sizeable effects on household financial decisions, inducing them to increase indebtedness. Finally, the reduction of the tax subsidy lowered equilibrium house prices.

AB - Using a major reform which scaled back the mortgage interest deduction for middle- and high-income households in Denmark, we study how tax subsidies affect housing decisions. We present four main findings. First, the mortgage deduction has a precisely estimated zero effect on homeownership for high- and middle-income households. Second, the mortgage deduction has a clear effect on housing demand at the intensive margin, inducing homeowners to buy larger and more expensive houses. Third, the deduction has sizeable effects on household financial decisions, inducing them to increase indebtedness. Finally, the reduction of the tax subsidy lowered equilibrium house prices.

U2 - 10.1257/pol.20170366

DO - 10.1257/pol.20170366

M3 - Journal article

VL - 13

SP - 273

EP - 303

JO - American Economic Journal: Economic Policy

JF - American Economic Journal: Economic Policy

SN - 1945-7731

IS - 2

ER -

ID: 244917111