Micro and Macro Implications of Household Behaviour and Financial Decision-Making - 17

We are delighted to announce the next seminar in the series - Micro and Macro Implications of Household Behaviour and Financial Decision-Making.

The seminar will run from 3:30 to 5:00 pm (GMT) on Friday 22 November.

Abdoulaye Ndiaye (New York University, Stern School of Business and CEPR) presenting "Property Taxes and Housing Allocation Under Financial Constraints" with discussion by Cristian Badarinza (National University Of Singapore).

This paper is co-authored with Joshua Coven (NYU Stern School of Business), Sebastian Golder (University of Hamburg) and Arpit Gupta (NYU Stern School of Business).

Abstract: Property taxes impact the housing distribution across generations. Low property taxes lead to concentrated ownership among elderly empty-nesters, limiting housing for financially constrained young families. Conversely, high property taxes act as a "forced mortgage," reducing upfront downpayments and enabling greater homeownership among younger households. We show in an overlapping generations model that raising property taxes in low-tax California to match those in higher-tax Texas increases homeownership in California by 4.6% and among younger households by 7.4% in steady state. Asset taxes can reallocate housing to higher-valuation households in the presence of financial constraints, providing an independent rationale for property taxes.

Register to receive the Zoom Link here.

Further details can be found on the seminar webpage here.