Property Taxes and Housing Allocation Under Financial Constraints

This paper has benefited from conversations with Manuel Amador, David Argente, Andy Atkeson, Christian Badarinza (discussant), Anmol Bandhari, Bence Bardoczy, Salome Baslandze, David Berger, Gideon Bornstein, Ashley Craig, Juan Carlos Conesa, Walter D’Lima (discussant), Sebastian Dydra, Vadim Elenev, Dirk Krueger, Carlos Garriga, Caitlin Gorback (discussant), Dan Greenwald, Deeksha Gupta, Fatih Guvenen, Irem Güçeri, Jonathan Heathcote, Kyle Herkenhoff, Hugo Hopenhayn, Troup Howard, Brandon Kaplowitz, Paolo Martellini, Ellen McGrattan, Konstantin Milbradt, Ben Moll, Michaela Paffenholz, Chris Phelan, Facundo Piguillem, Tarun Ramadorai, Juan Carlos Suárez Serrato (discussant), Florian Scheuer (discussant), Liyan Shi, Jaehee Song (discussant), Cailin Slattery (discussant), Kamila Sommer (discussant), Claudia Steinwender, Ludwig Straub, Venky Venkateswaran, Gianluca Violante, Daniel Waldinger, Conor Walsh, Francis Wong, Alex Zevelev (discussant), Nathan Zorzi and comments from conference and seminar participants at the 116th National Tax Association Conference, the Syracuse-Chicago Webinar Series on Property Tax Administration and Design, the CESifo Public Economics Week at LMU, Pizzanomics at EIEF, the 2024 Cornell Real Estate Symposium, the Minneapolis Fed, Toronto, CUNY, JHU Carey Finance Conference, Fannie Mae-Philly Fed Conference, NYU Stern, Duke University, the UGA Macro Workshop, the Chicago Fed-Indiana Housing Conference, Micro and Macro Implications of Household Behaviour and Financial Decision-Making, University of Pittsburgh, the Philadelphia Fed, Columbia Business School Alumni Conference, NYC Metro Real Estate Conference, Mannheim, University of Zurich, UT-Austin, Copenhagen Business School, AREUEA, Chicago Fed, Berkeley econ, Berkeley Haas, and the CEPR Public Economics Annual Symposium. Golder thanks the German Research Foundation (DFG) for financial support (project number 554426549). First version: July 9, 2024. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.