주택점유형태의 결정 및 자가주택수요에 적합한 사용자비용 및 소득세율

User Cost and Income Tax Rate for Demand for Owner-Occupied Housing and Tenure Choice

It is generally believed in housing literature that the marginal income tax rate is an appropriate variable for the income tax deductibility related to both homeownership decision and the decision of the quantity demanded of the owner-occupied housing In this study, extending the analysis by Hendershott and Slemrod(l983) and using a two-period intertemporal optimization framework, it is argued that different tax rates should be employed to adequately account for each housing decison. The theoretical model shows that while the marginal income tax rate is an appropriate one for the optimal decision for the quantity demanded of the owner-occupied housing, an weigted average income tax rate(so called tenure choice tax rate), not the marginal tax rate, should be used for the tenure decision. It is also shown that the use of the two different tax rates in the calculation of the user cost variable does not violate a households’ budget constraint. Simulation analyses show that, ceteris paribus, the difference between the marginal income tax rate and the tenure choice tax rate and the resultant difference of the relevant user costs of owning increase as the household’s pre-tax income increase and the weight of housing consumption in the household’s utility increases. Application of the above analysis to Korean owner-occupied housing market needs some of modifications because the housing market in Korea is believed to be segmented to new housing market and existing housting market, where the income tax deductibility is partly applied only to the new housing market. However, the same theoretical analysis can be applicable to derive appropriate tax rates for the homeownership decision and for the quantity demanded decision. A future research to this area will be interesting because Korea has more complex and tightly controlled housing market environment.