untitled

IV 1 IV 2 (i) 2 0.13 0.23 1 (i) 3 ( 0.11 0.19 0.5% 2 (ii) 1% (ii) 1,000, 1,000 (1 Q) G A 0.02 {e i ) 1} Q (e 5 1) 0.02 β Ρ (iii) 1 1 QG {e ig ( i G ) 1} QG (e 5 1) Ρ e in e i G n Q e in 1 e i G n 1 1 1 e 3ρ G B 0.01 3 tdt=0.01 0 e ρ IV 2 (b) ( ) ( 10 I II ) 0.0316 0.0293 0.0297 0.0234 0.0302 0.0303 0.0323 0.0310 0.0312 0.0241 0.0304 0.0305 0.0336 0.0301 0.0336 0.0303 0.0329 0.0311 0.0322 0.0305 0.0387 0.1221 0.1046 0.0919 0.1552 0.0849 0.0172 0.0594 0.0508 0.0597 0.1593 0.0773 0.0229 0.0894 0.0003 0.0849 0.0019 0.0566 0.0191 0.0773 ( ) (I) (II) 119

() (i) (ii) ( ) ( II) (i), 0.87 II 0.14 0.19 II 120

I II (ii) ( )1,000 (2 (c)(d)) (iii) 10 10 (1.07 1.08 1,000 121

IV 3 (b) 10 1,000 1,000 (i) 10 (ii) 122

(iii) 0.13 0.18 0.24 0.33 10 10 IV 4 3.03 3.06 3.4 0.8 i 10 (ii) 15 (iii) 15, 25, 35% (iv) IV 5 0 100 0.1000 0.2000 0.1500 0.0000 100 150 0.1000 0.2000 0.1500 0.0000 150 200 0.1000 0.2000 0.1500 0.0000 200 250 0.1000 0.2000 0.1500 0.1000 250 300 0.1000 0.2000 0.1500 0.1000 300 350 0.1000 0.2000 0.1500 0.1044 350 400 0.1000 0.2000 0.1500 0.1095 400 450 0.1000 0.2000 0.1500 0.1162 450 500 0.1000 0.2000 0.1500 0.1219 500 550 0.1000 0.2000 0.1500 0.1280 550 600 0.1000 0.2000 0.1500 0.1348 600 650 0.1000 0.2000 0.1500 0.1411 650 700 0.1000 0.2000 0.1500 0.1498 700 750 0.1000 0.2000 0.1500 0.1565 750 800 0.1000 0.2000 0.1500 0.1642 800 900 0.1000 0.2000 0.1500 0.1737 900 1250 0.1720 0.2000 0.2500 0.1992 1250 1500 0.3129 0.2000 0.3500 0.2489 1500 0.3129 0.2000 0.3500 0.3021 123

( IV 6) (iii) (i) 1,000 1,000 (iv) (ii) 1,000 1,000 (v) IV 6 0.0316 0.0299 0.0282 0.0288 0.0292 0.0323 0.0306 0.0294 0.0295 0.0299 0.0336 0.0317 0.0305 0.0304 0.0309 0.0329 0.0310 0.0296 0.0297 0.0301 0.0387 0.0790 0.1518 0.1552 0.1254 0.0172 0.0994 0.1715 0.1747 0.1454 0.0229 0.1308 0.2026 0.2005 0.1732 0.0019 0.1106 0.1778 0.1808 0.1532 124

125

0.24 0.27 0.28 (i) (ii) i (ii) 6 4 126

( ) 19 III (P 0 ) I (P 0 Y ) Y logih0.556215 ( 0.23) 1.258210 logp 0 ( 1.76) 0.833161 logy (10.36) R 2 =0.896 S.E 0.7364 logih0.283182 ( 0.12) 1.203272logP 0 ( 1.63) +0.823842logY (9.85) R 2 =0.894 S.E 0.7545 91 88 1.201.26 5.3 5.4 9.2 9.5 8.9% 8.7 7.67.4 6.3 6.8%12.7 13.58.9 9.610.4 11.1 3 1 2 127

3 (i) (ii) (iii) i 2 (ii) 128

) 5.3 5.4 6.7 6.8 6.7 6.8 0.2 9.2 9.5 11.3 11.6 11.3 11.6 0.4 8.7 8.9 11.0 11.1 11.0 11.1 0.4 7.4 7.6 9.3 9.6 9.3 9.6 0.4 1.26 ) ) I h I h* (1 ) YD YD * YD * I h* YD I h YD YD * I h 0.2 0.5 ) ( ) ) () SF YD ( ) (iii) (S*) (FW) SF f (S* FW) YD S*il(1 m i )il (1 Z)g (1 m D ))d i 1 i1 g ( ) d (/ ) 129

m i Z 0.55%) m D / / / is m S S * is 1 m S ) ) V 3 /12 ( ) S* 000 100 9.5 78.2 12.1 6.00 1.00 0 0 6.00 0100 150 5.9 116.5 5.1 6.00 0.97 0 0.03 6.36 0150 200 8.1 163.9 4.9 6.00 1.00 0 0 6.00 0200 250 9.9 209.6 4.7 6.11 0.95 0 0.05 6.72 0250 300 23.9 247.9 9.6 6.06 0.98 0 0.02 6.35 0300 350 32.1 287.5 11.2 6.09 0.96 0 0.04 6.58 0350 400 43.8 326.1 13.4 6.13 0.98 0 0.02 6.41 0400 450 43.3 363.7 11.9 6.13 0.92 0 0.08 7.10 0450 500 47.7 401.5 11.9 6.16 0.96 0 0.04 6.66 0500 550 32.1 436.7 7.4 6.16 0.91 0 0.09 6.79 0550 600 55.8 475.4 11.7 6.19 0.95 0 0.05 7.21 0600 650 50.3 510.2 9.9 6.11 0.91 0 0.09 7.23 0650 700 29.7 544.8 5.5 6.16 0.91 0 0.09 7.13 0700 750 75.2 578.5 13.7 6.20 0.94 0 0.06 7.31 0750 800 103.4 610.8 16.9 6.21 0.92 0 0.08 6.87 0800 900 79.0 657.4 12.0 6.23 0.86 0 0.14 7.94 0900 1250 154.8 761.9 20.3 6.32 0.63 0.19 0.18 8.29 1250 1500 213.0 936.6 22.7 6.46 0.36 0.43 0.22 8.15 01500 257.6 1112.7 22.9 6.14 0.34 0.49 0.17 7.29 12.3 7.13 g=0.175, d=0.013 130

SF 0.17433 2.8069S* YD ( 1.60) (1.50) 0.078135 FW 1 (2.10) YD R 2 0.442 D.W. 1.88 S.E. 0.042 (85 ) 1.63 S* t ( B) SF 0.18807 3.2367S* 0.067945 YD ( 1.74) (1.73) (1.18) FW 1 YD 0.36497 1.21 B YD R 2 0.458 D.W. 1.84 S.E. 0.041 S * t 1.88 (90) SF SF* SF 0.28069(S* S) YD YD* YD 1.5 2.3 (1985 18.4%) 1.3 1.9 1.9 1.9 0.5 ( ) ( ) ( ) ( ) ( ) 5.35.4 0.2 7.6 1.5 1.3 9.29.5 0.4 11.0 2.2 1.9 8.78.9 0,4 11.5 2.3 1.9 7.47.6 0.4 11.7 2.3 1.9 2.8 0.5 0.5 1.26 1.63 131

2 2 r m i C2 C1 1 r(1 m i) MAX u(c1 C2) 2 ( ) 1 P (1 m i) C1 C1 C1 P P u C2 C2 C2 u C2 C2 P P P ( ) 1 ( 4 )( 2 ) 2 dlog(c2 C1 ) dlog[1+r(1 m i)] u logc1 logc2 u u logp logp C1 logp C2 u P logp u 0 logc1 logp C2 u C1C2 S S logc1 logc1 S( logp log ( S ) logs S log[r(1 m i)] r(1 m i ) 1 r(1 m i) (S) (, 1 S 132

(i)3.46 2.67 ) ) ) 1,000 1,200 (0.2 2)1.7 0.4 (ii) (iii) 19 900 133

(10 ) (iv) ( 1 ) ( ) (II)(( ) (II) ) 10 ( ) (II) (II) 1,000 (II) ( )( II ) 10 (v) 1, 1.2 1.3 2 1.3 1.9 134

1 Atkinson, A. B., and M. A. King "Housing Policy, Taxation and Reform" Midland Bank Review, 1980 2 Fullerton, D., "The Indexation of Interest, Depreciation, and Capital Gains: A Model of Investment Incentives," NBER, Working Paper No. 1655, June. 1985 3 Hendershott, P. H., and D. C. Ling, "Trading and the Tax Shelter Value of Depreciable Real Estate," National Tax Jonrnal, Vol.XXXVII, No 2, June. 1984 4 Hendershott, P.H., and D. C, Ling, "Tax Reform and Housing," NBER, Working Paper. No. 1524, December. 1984 5 Hendershott, P. H., and D. C, Ling, "The Administration Tax Reform Proposal and Housing," NBER. Working Paper, No. 1740. October 1985. 6 Iwata, K., "Capital Costs of Housing Investment and Tax Policy," a paper Presented at the Cor-Group Meeting between the United States and Japan, July 1986 7 King, M. A., and D. Fullerton, "the Taxation of Income from Capital," the Uriversity of Chicago Press 1984 8 Rosen, H. S., "Housing Decisions and the U. S. Income Tax: An Econometric Analysis," Jonrnal of Public Economics 11.1979 1 ESP, 1986 6 2, 1986 9 3 ESP, 1980 2 4 60 5 60 2 6 58 7 60 8 60 135