Mortgage Revenue Bonds : Tax Exemption with a Vengeance / Patric H. Hendershott, National Bureau of Economic Research.

Format:

Book

Author/Creator:

Hendershott, Patric H., author.

National Bureau of Economic Research, author.

Series:

Working paper series (National Bureau of Economic Research) ; number w0447.

Working paper series (National Bureau of Economic Research) ; number w0447

Language:

English

Subjects (All):

Housing--Finance.

Housing.

Mortgage bonds.

Physical Description:

1 online resource (30 pages).

Place of Publication:

Cambridge, Massachusetts : National Bureau of Economic Research, 1980.

Summary:

This paper presents calculations of the impacts of two levels of mortgage revenue bonds (MRBs) on: (1) yields on home mortgages, tax-exempt bonds and taxable bonds, (2) the allocation of the American fixed capital stock among residential (by three tax brackets), business, and state and local capital, (3) the productivity of this aggregate stock, and (4) the federal deficit. The levels of MRBs analyzed are 40 billion and the maxi-mum permitted by the realities of the market place. The latter is estimated to be 440 billion or over half of regular home mortgages outstanding. Limited levels of MRBs directed solely at "lower" income housing would not have any clear impact on productivity. An unlimited volume would generate an estimated annual productivity loss of 3 billion. Assuming a 4 percent discount rate, the present value of this stream is 75 billion.

Notes:

Description based on publisher supplied metadata and other sources.