Inflation and the Benefits from Owner-Occupied Housing / Patric H. Hendershott, Sheng Cheng Hu.

Format:

Book

Author/Creator:

Hendershott, Patric H.

Contributor:

National Bureau of Economic Research.

Hu, Sheng Cheng.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0383.

NBER working paper series no. w0383

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1979.

Summary:

This paper examines the effects of inflation on the allocation of resources between residential and nonresidential uses and the productivity of capital in the U.S. We begin by calculating the realized rates of return on homeowner equity and the contributions of fixed-rate mortgages and differences in relative inflation rates to extraordinary earned real returns. The paper then focuses on the implications of the extraordinary real returns on residential capital for stock prices and on the demand for owner-occupied housing. Proposals for achieving efficient allocation of capital between residential and nonresidential uses are also considered.

Notes:

Print version record

August 1979.