NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Inflation and the Benefits from Owner-Occupied Housing

Patric H. Hendershott, Sheng Cheng Hu

NBER Working Paper No. 383 (Also Reprint No. r0195)
Issued in August 1979
NBER Program(s):Public Economics Program

This paper examines the effects of inflation on the allocation of resources between residential and nonresidential uses and the productivity of capital in the U.S. We begin by calculating the realized rates of return on homeowner equity and the contributions of fixed-rate mortgages and differences in relative inflation rates to extraordinary earned real returns. The paper then focuses on the implications of the extraordinary real returns on residential capital for stock prices and on the demand for owner-occupied housing. Proposals for achieving efficient allocation of capital between residential and nonresidential uses are also considered.

download in pdf format
   (652 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w0383

Published: Hendershott, Patric H. and Hu, Sheng Cheng. "Inflation and Extraordinary Returns on Owner-Occupied Housing: Some Implications for Capital Allocation and Productivity Growth." Journal of Macroeconomics, Vol. 3, No. 2, (Spring 1981), pp. 177-203.

Users who downloaded this paper also downloaded* these:
Summers w0606 Inflation, the Stock Market, and Owner-Occupied Housing
Berkovec and Fullerton w2826 The General Equilibrium Effects of Inflation on Housing Consumption and Investment
Poterba w0553 Inflation, Income Taxes, and Owner-Occupied Housing
Sinai and Souleles w9462 Owner-Occupied Housing as a Hedge Against Rent Risk
Hendershott and Shilling w0543 The Economics of Tenure Choice: 1955-79
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us