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作者

来源

REGIONAL SCIENCE AND URBAN ECONOMICS,Vol.73,P.196-216

语言

英文

关键字

Homeownership; Policy; Public assistance; BENEFITS; TERMINATION

作者单位

[Hembre, Erik] Univ Illinois, Chicago, IL 60607 USA. Hembre, E (reprint author), Univ Illinois, Chicago, IL 60607 USA. E-Mail: ehembre@uic.edu

摘要

A major policy response to the 2008 housing crisis was the First-time Homebuyer Tax Credit, worth up to $8,000. To estimate the tax credit effects on homeownership, I construct a quarterly first-time homebuyer time-series using American Housing Survey data and utilize a difference-in-difference framework using variation across income levels among first-time homebuyers. I estimate the tax credit induced 399,846 first-time homebuyers and calculate an economic cost of $27,010 per induced homeowner. Estimating state- and MSA-level effects using variation across homebuyer status, I find a strong correlation between local effect size and average home values, with a doubling in average home values implying a drop in effect size by 18.8 percentage points.