Mortgage Revenue Bonds: Tax Exemption with a Vengeance

Patric Hendershott

No 447, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper presents calculations of the impacts of two levels of mortgage revenue bonds (MRBs) on: (1) yields on home mortgages, tax-exempt bonds and taxable bonds, (2) the allocation of the American fixed capital stock among residential (by three tax brackets), business, and state and local capital, (3) the productivity of this aggregate stock, and (4) the federal deficit. The levels of MRBs analyzed are $40 billion and the maxi-mum permitted by the realities of the market place. The latter is estimated to be $440 billion or over half of regular home mortgages outstanding. Limited levels of MRBs directed solely at "lower" income housing would not have any clear impact on productivity. An unlimited volume would generate an estimated annual productivity loss of $3 billion. Assuming a 4 percent discount rate, the present value of this stream is $75 billion.

Date: 1980-02
Note: PE ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Hendershott, Patric H. "Mortgage Revenue Bonds: Tax Exemption with a Vengeance." Efficiency and the Municipal Bond Market, edited by Kaufman. Greenwich, CT: JAI Press, (1981), pp. 13-36.

Downloads: (external link)
http://www.nber.org/papers/w0447.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:0447

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w0447

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().