BIGFI/Finance Seminar with Arpit Gupta, New York University Stern School of Business

On Friday, May 23, 2025, Arpit Gupta, will be giving a seminar on the paper: Property Taxes and Housing Allocation Under Financial Constraints

Friday, May 23, 2025 - 11:00 to 12:15

The Department of Finance and BIGFI is proud to announce the upcoming seminar with Arpit Gupta, New York University Stern School of Business.

Arpit Gupta will present: Property Taxes and Housing Allocation Under Financial Constraints

Abstract:
Property taxes impact the housing distribution across generations. Low property taxes lead to concentrated ownership among elderly empty-nesters, limiting housing for financially constrained young families. Conversely, high property taxes act as a "forced mortgage,'' reducing upfront downpayments and enabling greater homeownership among younger households. We show in an overlapping generations model that raising property taxes in low-tax California to match those in higher-tax Texas increases homeownership in California by 4.6% and among younger households by 7.4% in steady state. Asset taxes can reallocate housing to higher-valuation households in the presence of financial constraints, providing an independent rationale for property taxes.

Location:
Solbjerg Plads 3
2000 Frederiksberg
Room: SPs03

The page was last edited by: Department of Finance // 05/20/2025