Does the tax relief for homeownership have effect on household mortgage leverage?

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dc.contributor.author Slintáková, Barbora
dc.contributor.author Klazar, Stanislav
dc.contributor.other Ekonomická fakulta cs
dc.date.accessioned 2018-03-29
dc.date.available 2018-03-29
dc.date.issued 2018-03-29
dc.identifier.issn 1212-3609
dc.identifier.uri https://dspace.tul.cz/handle/15240/22786
dc.description.abstract This article presents results of the analysis of the relationship between the tax relief for the homeownership and the household mortgage debt. The advantageous treatment of housing is provided especially by a personal income tax if owner-occupiers do not report imputed rents as income but can deduct mortgage interest costs. This preferred tax status is justified by the existence of positive externalities and a desire to enhance housing opportunities available to citizens. However, evidence that the housing policy via the taxation achieves its objectives is still weak. Moreover the tax provisions for the homeownership benefit rather higher-income households. Furthermore there are indications that the housing taxation encourages levered property purchases and thus contributes to the household debt growth. Since the household indebtedness can have adverse effects on households and macroeconomic performance we focused on the issue whether the income tax relief for homeowners that finance their dwellings via a mortgage does affect the household leverage. We constructed the variable capturing especially the mortgage interest payments deductibility. We employed the multiple regression and data for the former 15 EU member countries (except Greece) for the period 2004-2013. We estimated two models for two representative taxpayers who vary in a family status using the panel data analysis with fixed effects. From our results we inferred that the income tax relief for the homeownership might not have influenced the mortgage leverage significantly in the selected European countries in the given period. The mortgage debt was affected rather by the economic level, price of own housing, mortgage interest payments or demographic structure. en
dc.format text
dc.format.extent 16 stran cs
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
dc.relation.ispartof Ekonomie a Management cs
dc.relation.ispartof Economics and Management en
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dc.rights CC BY-NC
dc.subject household indebtedness en
dc.subject housing taxation en
dc.subject mortgage interest deductibility en
dc.subject.classification G21
dc.subject.classification H24
dc.title Does the tax relief for homeownership have effect on household mortgage leverage? en
dc.type Article en
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2018-1-004
dc.identifier.eissn 2336-5604
local.relation.volume 21
local.relation.issue 1
local.relation.abbreviation E+M cs
local.relation.abbreviation E&M en
local.faculty Faculty of Economics
local.citation.spage 52
local.citation.epage 67
local.access open
local.fulltext yes
local.filename EM_1_2018_04


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