Michigan’s implementation of assessment limits gives rise to a wide variation in taxable basis across comparable homes. Exploiting the fact that the resulting differences in property tax liability are temporarily inherited by new homebuyers, I estimate the degree of capitalization of these largely idiosyncratic tax differences to evaluate whether homebuyers understand the tax implications of their home purchases. Consistent with anecdotal evidence but in stark contrast to the traditional view of rational consumer behavior, I find that homebuyers are woefully inattentive to the temporary nature of their initial tax obligations, resulting in an overpayment of nearly $10,000 for the average home.

中文翻译：

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对递延增加税基的疏忽：密歇根州购房者如何支付评估限额

密歇根州实行分摊限额，导致可比房屋的应税基础差异很大。利用由此产生的财产税负债差异暂时由新购房者继承的事实，我估计了这些主要是异质的税差异的资本化程度，以评估购房者是否理解购房对税收的影响。与轶事证据一致，但与传统的理性消费者行为观点形成鲜明对比，我发现购房者对初始税义务的临时性质非常不注意，导致平均房屋多付了近10,000美元。