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MARC Record from Library of Congress

Record ID marc_loc_2016/BooksAll.2016.part34.utf8:82703619:2448
Source Library of Congress
Download Link /show-records/marc_loc_2016/BooksAll.2016.part34.utf8:82703619:2448?format=raw

LEADER: 02448cam a22003497a 4500
001 2006618104
003 DLC
005 20130601093429.0
007 cr |||||||||||
008 061012s2006 ilu sb f000 0 eng
010 $a 2006618104
040 $aDLC$cDLC
043 $an-us---
050 00 $aHG2401
100 1 $aAmromin, Gene.
245 14 $aThe tradeoff between mortgage prepayments and tax-deferred retirement savings$h[electronic resource] /$cGene Amromin, Jennifer Huang, and Clemens Sialm.
260 $a[Chicago, Ill.] :$bFederal Reserve Bank of Chicago,$c[2006]
490 1 $aWorking paper series ;$vWP-2006-5
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 10/12/2006.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"We show that a significant number of households can perform a tax arbitrage by cutting back on their additional mortgage payments and increasing their contributions to tax- deferred accounts (TDA). Using data from the Survey of Consumer Finances, we show that about 38% of U.S. households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice. For these households, reallocating their savings can yield a mean benefit of 11 to 17 cents per dollar, depending on the choice of investment assets in the TDA. In the aggregate, these misallocated savings are costing U.S. households as much as 1.5 billion dollars per year. Finally, we show empirically that this inefficient behavior is unlikely to be driven by liquidity considerations or other constraints, and that self-reported debt aversion and risk aversion variables explain to some extent the preference for paying off debt obligations early and hence the propensity to forgo our proposed tax arbitrage."--Federal Reserve Bank of Chicago web site.
650 0 $aFinance, Personal$zUnited States.
650 0 $aRetirement income$zUnited States.
650 0 $aMortgage loans$zUnited States.
700 1 $aHuang, Jennifer,$d1973-
700 1 $aSialm, Clemens.
710 2 $aFederal Reserve Bank of Chicago.$bResearch Department.
830 0 $aWorking paper series (Federal Reserve Bank of Chicago. Research Department : Online) ;$vWP-2006-5.
856 40 $uhttp://www.chicagofed.org/economic_research_and_data/wp_abstract.cfm?pubsID=792