Stimulating Housing Markets

Nick Turner, Eric Zwick and David Berger
Additional contact information
Eric Zwick: University of Chicago

No 227, 2016 Meeting Papers from Society for Economic Dynamics

Abstract: We estimate the effect of the 2009 and 2010 First-Time Homebuyer Tax Credit program on house purchases and prices using variation across local geographies in ex ante exposure to the program. Using this instrument and a difference-in-differences design, we find that the program induced a cumulative increase in home purchases in high exposure places nearly double that of low exposure places. We find little evidence of a sharp reversal in the post period; instead, demand appears to come from several years in the future. While the policy had a limited impact as direct fiscal stimulus, it sped the process of reallocating homes from distressed sellers to fundamental buyers, stabilized house prices, and enabled substantial deleveraging.

Date: 2016
New Economics Papers: this item is included in nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2016/paper_227.pdf (application/pdf)

Related works:
Journal Article: Stimulating Housing Markets (2020)
Working Paper: Stimulating Housing Markets (2016)
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:red:sed016:227

Access Statistics for this paper

More papers in 2016 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().