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Unformatted text preview: Urban Economics Lecture 11-23 Housing: 1-It's big 2-It's subsidized 3-That matters 4-Maybe mortgages non-taxation of imputed rent mortgage interest deduction (MID) exclusion of capital gains deductibility of property taxes (big subsidy to education) have to itemize in order to take advantage of mortgage interest and property tax deductibles takes a substantial amount of money to itemize subsidy to education in wealthy areas and upper income areas richest people in the country are not dominated by houses, all wealth is not in your house, you have enough money to invest in other things in general, who writes the check is rich people medicaid pays for nursing homes- in order to qualify you have to be poor, not many assets, advantages to medicaid advantages to mortgages- Freddie and Fannie **big subsidies what are the effects? 1- Great housing in the US 2- Homeownership zip homeowner tax subsidies encouraging ownership, do not encourage ownership, encourage bigger houses 3- Small households...
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This note was uploaded on 02/16/2011 for the course ECON 4228 taught by Professor O'flaherty during the Spring '11 term at Columbia.
- Spring '11