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In Canada, on the other hand, mortgage interest and municipal taxes are not tax deductible. For this next part, modify the house price equation you
In Canada, on the other hand, mortgage interest and municipal taxes are not tax deductible. For this next part, modify the house price equation you found in part a) to reflect the situation for Canadian house prices ( pC H ). [Note: You do not need to solve the model again for pC H , simply change the price equation you found in part a) to reflect that the fact that in Canada, interest and municipal taxes are not tax- deductible.] Next assume that income (Y), the rate of interest (r) and all taxes ( and H ) are the same for these households in each country. As well, since we are considering a representative household, you can set H, the stock of housing in each country, equal to each other
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