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A Comment on "Tax Rates and Implicit Rates of Return on Owner-Occupied Single-Family Housing"

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Abstract

In the Webb and Rubens article on homeowner rates of returns (Journal of Real Estate Research 2:2), they use a model that tends to underestimate the true returns to housing. Both their model and assumptions are reviewed in the discussion below, and modified using the identical data, to show the extent of the bias, and a more realistic result.

Suggested Citation

  • Norman G. Miller & Michael A. Sklarz, 1989. "A Comment on "Tax Rates and Implicit Rates of Return on Owner-Occupied Single-Family Housing"," Journal of Real Estate Research, American Real Estate Society, vol. 4(1), pages 81-85.
    • Handle: RePEc:jre:issued:v:4:n:1:1989:p:81-85
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    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol04n01/v04p081.pdf
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    References listed on IDEAS

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    1. William W. Alberts & Halbert S. Kerr, 1981. "The Rate of Return from Investing in Single-Family Housing," Land Economics, University of Wisconsin Press, vol. 57(2), pages 230-242.
    2. James R. Webb & Jack H. Rubens, 1987. "Tax Rates and Implicit Rates of Return on Owner-Occupied Single-Family Housing," Journal of Real Estate Research, American Real Estate Society, vol. 2(2), pages 11-28.
    3. Hendershott, Patric H. & Cheng Hu, Sheng, 1981. "Inflation and extraordinary returns on owner-occupied housing: Some implications for capital allocation and productivity growth," Journal of Macroeconomics, Elsevier, vol. 3(2), pages 177-203.
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    Cited by:

    1. Arkadiusz Górski & Agnieszka Parkitna & Kamila Urbańska, 2021. "Identification of risks of investments into residential premises for rent in Poland," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 31(4), pages 53-68.
    2. Mayock, Tom & Malacrida, Rachel Spritzer, 2018. "Socioeconomic and racial disparities in the financial returns to homeownership," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 80-96.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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