Publication
Title
An assessment of the spatial efficiency of tax benefits for home mortgages in Belgium
Author
Abstract
In this paper, we focus on the tax deductibility of mortgage loans, which is a key measure of housing policies in many countries. Several studies have shown that the distribution of the benefits of this measure runs counter to the vertical equity principle. We contribute to the existing literature by addressing the distribution of the tax deductibility of mortgage loans considering the spatial outcomes of this policy. We use Belgian data to measure the impact of this policy on households' income and inequality and poverty in different types of areas. We show that this measure favours suburban households and subsidizes urban sprawl. Exogenous factors such as past housing policies and homeownership determinants play a key role in this phenomenon. We also simulate the distributional impact of three stylized reforms of the deductibility of mortgage loans in Belgium. These simulations show that the distributional outcomes could be improved on both social and spatial sides.
Language
English
Source (journal)
Housing studies. - Harlow, 1986, currens
Publication
Abingdon : Routledge journals, taylor & francis ltd , 2019
ISSN
0267-3037 [print]
1466-1810 [online]
DOI
10.1080/02673037.2018.1562057
Volume/pages
p. 1-27
ISI
000470496900001
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Law 
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identifier
Creation 07.05.2019
Last edited 24.11.2024
To cite this reference