| Article ID: | iaor201522956 |
| Volume: | 12 |
| Issue: | 1 |
| Start Page Number: | 83 |
| End Page Number: | 91 |
| Publication Date: | Mar 1989 |
| Journal: | Journal of Financial Research |
| Authors: | Sirmans C F, Sa-Aadu J, Benjamin John D |
| Keywords: | finance & banking |
Recent empirical evidence on the effect of below‐market financing on house prices has suffered from estimation and interpretation problems. In this paper, a methodology is developed to solve these problems. Using data for mortgage revenue bonds, the methodology is tested with results indicating that all financing subsidy is capitalized into house prices.