How Do Mortgage Subsidies Affect Home Ownership? Evidence From The Mid-century GI Bills
The sharpest increase in U.S. home ownership over the last century occurred between 1940 and 1960, associated primarily with a decrease in the age at first ownership. To shed light on the contribution of several coincident large-scale government interventions in housing finance, the author examines veterans' home loan benefits provided under the postwar GI Bills. The author uses two breaks in the probability of military service by date of birth, for cohorts coming of age at the end of World War II and the Korean War, to estimate the impact of veteran status on home ownership.