@article{THESIS,
      recid = {3861},
      author = {Zheng, Xiaojin},
      title = {Mortgage Subsidy and Household Welfare},
      publisher = {University of Chicago},
      school = {M.A.},
      address = {2022-06},
      number = {THESIS},
      abstract = {Mortgage subsidy, particularly in mortgage interest  deduction, has been a controversial topic that fewer and  fewer debates were willing to touch on. As the third  largest component of government tax expenditure, evaluating  mortgage subsidy is of great importance when evaluating how  effectively the government budget has provided households  with better financial well-being. This paper discussed the  opponent condition of mortgage interest deduction and its  resulted excess burden. Given the subsidy shows vast  heterogeneity across income groups and geography due to  itemization heterogeneity, I proposed the theoretical  explanation by explicitly including unit user cost of  housing consumption per the difference in tax deduction  choice. I further conducted an itemization share analysis  to support my proposition about the relationship between  mortgage loan characteristics and itemization decisions.  Moreover, I calculated and contrasted the excess burden of  itemization carried across income groups and loan-to-value  ratio thresholds. I found households with a low  loan-to-value ratio are less likely to itemize their tax  deduction for receiving the subsidy, and households facing  higher mortgage interest rates are more willing to itemize.  The excess burden is also distributed unevenly across  income groups, same as how the benefits are  disproportionately received.},
      url = {http://knowledge.uchicago.edu/record/3861},
      doi = {https://doi.org/10.6082/uchicago.3861},
}