Project:

This study examines the impact of the state and local tax (SALT) deduction on home price capitalization. By exploiting the recent cap of the SALT deduction put in place by the Tax Cut and Jobs Act of 2017 (TCJA17), we compare the effect on home prices in areas with high salt deduction to low salt deduction areas. The data comes from two sources, Zillow Transaction and Assessment Database (ZTRAX) and the Home Mortgage Disclosure Act (HMDA). Using several keys, this data is joined to create a national sample of home characteristics linked to mortgage and individual characteristics. Using this data, we can estimate an instrument of potential SALT deduction amount and estimate the impact the policy change had on sales price. Currently the data is saved in many parquet files to reduce the size, however the raw data is several TBs.

Software:

The following will be used for any data cleaning/ merging:

R > 3

Python >= 3.5

Pyspark if available

The following (if available) will be used for estimation of the model (most likely via maximum likelihood):

Matlab (w/ the following toolboxes: Optimization, Econometrics, and Statistics)

Stata

R > 3

Python >= 3.5

Students:

Chase Coleman, RCTF Grad Scholarship, Added 10/14/2021 on MCC

Collaborators:

Kenneth Tester (University of Exeter)

Grants:

Publications:

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