Costly reversals of bad policies: The case of the mortgage interest deduction
通过构建一个校准至美国经济的生命周期模型，测量了在不同实施场景下取消抵押贷款利息扣除的福利效应，发现考虑过渡动态后多数家庭反对改革且平均福利为负。
This paper measures the welfare effects of removing the mortgage interest deduction under a variety of implementation scenarios. To this end, we build a life-cycle model with heterogeneous households calibrated to the U.S. economy, which features long-term mortgages and costly refinancing. In line with previous research, we find that most households would prefer to be born into an economy without the deductibility. However, when we incorporate transitional dynamics, less than forty percent of households are in favor of a reform and the average welfare effect is negative. This result holds under a number of removal designs.