The impact of housing costs on the living arrangements of single mothers

Article Abstract:

The last two decades' increase in the number of minors with single mothers have prompted policymakers to consider the effect of housing costs on the single mother's decision whether or not to head her own household, or to live within another. Some 13.7 million (22% of the population) children from zero to eighteen years of age lived with a single female parent in 1989, up from 8% in 1960. Using data from the Housing and Urban Development's Fair Market Rents and the 1986 Current Population Survey, analysis suggests that housing costs are inversely related to the probability of single mothers' household headship, especially for those under age 36. The results bring together urban economic literature on household formation and Aid for Families with Dependent Children (AFDC) demographics. The latter research is largely concerned with the impact of AFDC transfers on living arrangements.

Single mothers, Transfer payments

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Housing costs and bequest motives

Article Abstract:

The effects of household bequest motives and inheritance taxes on the user cost of housing is examined. By ignoring such effects, the standard literature overstates actual user costs. Analysis shows that if inheritance taxes on housing are lower than those for other physical and financial assets, or if housing bequest assessments are below market value, home ownership has additional benefits that are spread over the owner's lifetime. The inclusion of such benefits in the calculation of the user cost of housing is demonstrated. The results indicate that equilibrium housing prices in Japan, and the subsidy value of imputed rent tax exemptions for US owner-occupied housing, may both be overestimated.

Economic aspects, Transfer taxes, Estate settlement costs

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Estimation of housing depreciation: short-term quality change and long-term vintage effects

Article Abstract:

Longitudinal data do not generally allow for estimation of depreciation when rent inflation and vintage effects are present, except when an identifying assumption is made. The nature of depreciation estimation and the identification issue are considered for the econometric rent regression model. The effects of an alternative identifying assumption are proposed and analyzed. Data from the Annual Housing Survey of the Detroit metropolitan area are used.

Research, Analysis, Inflation (Finance), Depreciation, Inflation (Economics)

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