Tracy M. Turner

Travel to work and household responsibility: new evidence

A persistent empirical finding in the research on travel patterns is that women tend to engage in shorter work commutes than men. Research evaluating the degree to which this gender differential in commuting may be explained by the division of labor in the household has produced decidedly mixed findings. This paper presents a critical review of the methods and results of recent research on the gender differential in commuting along with the associated implications for the household responsibility hypothesis (HRH). While all of the articles reviewed are informative and unique, not all conclusions are well supported. The paper then tests the HRH using the 1990 NPTS travel data. The new evidence confirms that women continue to exhibit shorter commute times and distances than men and provides support for the HRH. The paper concludes with a summary of findings and recommendations for further research.

The Mortgage Interest Deduction and Its Impact on Homeownership Decisions

This paper examines the impact of the combined U.S. state and federal mortgage interest deduction (MID) on homeownership attainment, using data from 1984 to 2007 and exploiting variation in the subsidy arising from changes in the MID within and across states over time. We test whether capitalization of the MID into house prices offsets the positive effect on homeownership. We find that the MID boosts homeownership attainment only of higher-income households in less tightly regulated housing markets. In more restrictive places, an adverse effect exists. The MID is an ineffective policy to promote homeownership and improve social welfare.

Exits from Homeownership: The Effects of Race, Ethnicity, and Income

This paper examines the extent to which populations experiencing low homeownership rates in the U.S. also experience high homeownership exit rates. We determine whether low-income Hispanic and black households that achieve homeownership are as likely as white and high-income households to sustain it. Using the Panel Study of Income Dynamics spanning the years 1970-2005, we find that low-income homeowners consistently have higher homeownership exit rates, Hispanic households have higher raw exit rates prior to but not subsequent to 1997, and a black/white sustainability gap appears to arise post-1997. Copyright (c) 2008, Wiley Periodicals, Inc.

Property Taxes and Residential Rents

Property taxes are a fundamental source of revenue for local governments, constituting 73% of local government tax revenue in the United States. In this article, we empirically investigate the impact of residential property taxes on residential rents. Using data from the American Housing Survey and the National League of Cities, we estimate numerous specifications of a hedonic rent equation with comprehensive unit-level, neighborhood-level and city-level controls. We find that a one standard deviation increase in the property tax rate raises residential rents by roughly

Taxation and House-Price Uncertainty: Some Empirical Estimates

400 annually.

Cigarette Taxes and Cross-border Revenue Effects

Purchasing a home involves a large and localized investment that leaves many families exposed to volatile house prices and at risk of losing their home equity. Price movements are typically not synchronized across cities, suggesting the potential for efficiency gains through risk sharing across households. In this paper, we consider the possibility of risk sharing through capital gains taxation. When full loss offset is permitted, potential gains and losses are reduced at the household level by taxation and distributed nationally, thereby allowing the tax authority to diversify away the local risks associated with owner-occupied housing. We simulate the effect of a capital gains tax with full loss offset on tenure choice and housing demand using micro-level data from the American Housing Survey, spanning ten years, from 1985 to 1995, and measures of time varying risk and return.

Are Rising College Premiums Capitalized into House Prices? Evidence from China

Episodes of large tax differentials between neighboring states create an incentive for cigarette tax avoidance by border crossing. We use unique quarterly panel data at the county level for the state of Kansas on cigarette retailers’ sales tax remittances by distance to a state border to gauge the extent of smuggling activity and revenue effects of increases in cigarette excise tax rates. For quantities sold near an urban, low-tax border, we find sizable effects of higher excise tax rates on sales and cigarette excise tax revenues. Implications for cross-border state revenue leakages are discussed.

The Short-term Effects of the Kansas Income Tax Cuts on Employment Growth:

Many areas in China experienced steeply rising house prices beginning in 2003. We test whether a change in local residency requirements may have played a role in driving up house prices in some places by tying access to Chinese universities to local homeownership status in the presence of a rising college premium. We generate a novel dataset that combines China housing market and neighborhood data with household and university admission data. We find evidence of capitalization effects and a sizable increase in the likelihood of homeownership post policy change in places with the greatest preferential access to Chinas elite universities. This article is protected by copyright. All rights reserved

Measuring Sunk Costs in Agricultural and Food Industry Assets: Why Some Assets Sell Below Appraisal

The state of Kansas made dramatic changes to the structure of its personal income tax by eliminating taxation of business income and lowering marginal tax rates on other personal income sources. Proponents of the legislation maintain that the tax reductions will stimulate employment growth. Using a difference-in-differences approach, we estimate the impact of the tax changes on private-sector employment in the state of Kansas, relative to its border states, using data on the number of establishment employees and proprietors. We apply multistate county fixed effect model and county-border matching approaches to identify tax effects. Our findings indicate that two years post enactment, the tax law changes have not yielded a net increase in private-sector employment.

Homeownership, wealth accumulation and income status

Abstract Asset obsolescence or external obsolescence isa decline in the economic value of capital because ofa decrease in demand for the capital’s services. Measurements of sunk costs typically use appraised values of capital. In food and agricultural industries facing asset obsolescence due to government policy, appraised values may be greatly overstated and this has implications for research on industrial structure. A theoretical model to account for the appraisal error is developed and the method is applied to the U.S. sugar beet industry. The sugar beet industry displays symptoms of asset obsolescence. Our estimates indicate that plant appraisals using currently accepted practices greatly overstated the true value of these assets in 2006.