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The Impact on Residential Choice of the Family Home Exemption in Resource-Tested Transfer Programs

Financial growth

Renuka Sane and John Piggott

Many countries have policies offering transfers or other entitlements, subject to a resources test. In most cases, these exempt the family home. While the impacts of means-tested programs on saving and labor supply have been extensively studied, exempting the owner-occupier home has escaped analytic attention.

We assess the exemption of the owner-occupied home from the Australian age-pension on residential mobility and housing trade-downs.

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