An empirical analysis of the effect of the gift tax and the mortgageburden on intergenerational transfe

Children may receive monetary transfers from their parents to realize the dream of homeownership. This raises the question of whether transfers received decrease if governments also provide a homeownership-related subsidy. The purpose of this paper is to empirically examine this question, using a sample of the Japanese home-buying households that are subsidized by a mortgage tax deduction （MTD) and a gift tax cut. In the empirical stage, we offer a test of the effect of the homeownership-related subsidieson both the extensive （the probability of receiving transfers) and the intensive （the amount of transfers received) margins. The empirical results appear to indicate that the MTD has a tendency to crowd out transfers on both the extensive and the intensive margins,while the gift tax cut lead to the opposite result