| exists; home equity rate pa are still two owners and two occupiers, but the transactions between them no longer go through the market. The amount that would have changed hands had the owner and occupier been different persons is called the imputed rent. The effect of owner occupancy is therefore that the imputed rents disappear from measures home equity rate pa national income and output, unless figures are added to take them into account. Government loses the opportunity to tax the transaction. Sometimes governments have attempted to tax the imputed rent (Schedule A of the U.K. income tax used to do this), but this tends to be unpopular because most people do not understand the concept of imputed rent. In modern economies, variations in the rate of owner occupancy are a good home equity rate pa of the overall |
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