Consequences of Debt Capitalization: Property Ownership and Debt/Tax Choice

Conference object, Preprint OPEN
Eichenberger, Reiner; Stadelmann, David;
(2009)
  • Publisher: Verein für Socialpolitik Frankfurt a. M.
  • Subject: Public Debts | H74 | Homeownership | Public Debts; Homeownership; Taxes; Ricardian Equivalence | H00 | Taxes | Ricardian Equivalence | R51
    • jel: jel:H00 | jel:H74 | jel:R51
      ddc: ddc:330

Public debts capitalize into property prices. Therefore, property owners tend to favor tax over debt financing for government spending. In contrast, tenants do not suffer from debt capitalization. Thus, they tend to favor debt over tax financing. Our model of the result... View more
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