Housing, Consumption, and Credit Constraints PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Housing, Consumption, and Credit Constraints PDF full book. Access full book title Housing, Consumption, and Credit Constraints by Andreas Lehnert. Download full books in PDF and EPUB format.
Author: Andreas Lehnert
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 72
Get Book Here
Book Description
"I test the credit-market effects of housing wealth shocks by estimating the consumption elasticity of house price shocks among households in different age quintiles. Younger households face faster expected income growth and hence would like to borrow more than older households. I estimate consumption elasticities from housing wealth by age quintile to be (4; 0; 3; 8; 3) percent. As predicted by theory, the youngest group has a higher elasticity of consumption than the next two age quintiles. That the consumption of the age quintile on the verge of retirement is responsive to housing wealth is also not surprising: I show that these households are likeliest to "downsize" their house and thus realize any capital gains"--Abstract.
Author: Andreas Lehnert
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 72
Get Book Here
Book Description
"I test the credit-market effects of housing wealth shocks by estimating the consumption elasticity of house price shocks among households in different age quintiles. Younger households face faster expected income growth and hence would like to borrow more than older households. I estimate consumption elasticities from housing wealth by age quintile to be (4; 0; 3; 8; 3) percent. As predicted by theory, the youngest group has a higher elasticity of consumption than the next two age quintiles. That the consumption of the age quintile on the verge of retirement is responsive to housing wealth is also not surprising: I show that these households are likeliest to "downsize" their house and thus realize any capital gains"--Abstract.
Author: S. Borağan Aruoba
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
Author: Xuefeng Pan
Publisher:
ISBN: 9781369087628
Category : Home ownership
Languages : en
Pages : 128
Get Book Here
Book Description
This dissertation adds to the literature by building and utilizing micro home prices that produce new results on the housing wealth effect, by showing that home equity withdrawals for consumption are independent of specific housing finance institutions, and by proving that monetary policy shocks also transmit to consumption through the housing sector, in addition to the balance-sheet channel often found.
Author: François Ortalo-Magné
Publisher:
ISBN:
Category : Credit
Languages : en
Pages : 60
Get Book Here
Book Description
Author: Kerry D. Patterson
Publisher:
ISBN:
Category : Consumer credit
Languages : en
Pages : 19
Get Book Here
Book Description
Author: Daehwan Kim
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
Get Book Here
Book Description
Utilizing unique features of chonsei housing contracts popular in South Korea, we conduct a new test of the presence of credit constraints. We extend a theory to characterize the impact on nondurable and durable consumption of a liquidity reduction arising from chonsei deposit increases. The theory implies the response under credit constraints should differ from those of an unconstrained response and this allows us to make inferences about the presence of credit constraints. Our empirical analysis uses Korea Labor and Income Panel Study (KLIPS) and supports the significance of credit constraints. Chonsei households' behavior is also indicative of very low income and wealth levels.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: John V. Duca
Publisher:
ISBN:
Category : Housing
Languages : en
Pages : 0
Get Book Here
Book Description
Most US house price models break down in the mid-2000's, due to the omission of exogenous changes in mortgage credit supply (associated with the sub-prime mortgage boom) from house price-to-rent ratio and inverted housing demand models. Previous models lack data on credit constraints facing first-time home-buyers. Incorporating a measure of credit conditions--the cyclically adjusted loan-to-value ratio for first time buyers--into house price to rent ratio models yields stable long-run relationships, more precisely estimated effects, reasonable speeds of adjustment and improved model fits.
Author: Jie Gan
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
Get Book Here
Book Description
This paper uses a large panel dataset that tracks the housing wealth and spending behavior of 12,793 individuals in Hong Kong to study how housing wealth affects household consumption. Housing wealth is measured based on the repeated-sales price indices of nine districts in Hong Kong, which are estimated using government registry of all the 900,000 repeated housing transactions. Consumption is measured by credit card charges provided by the five largest credit card issuers in Hong Kong. These detailed data make it possible to identify consumption responses to housing wealth based on time-series variation within individual households (through household fixed effects). Further, rich variations across households help pin down the mechanism of the observed consumption sensitivity.I find a significant effect of housing wealth on consumption. Such an effect seems to be on account of a reduction in precautionary saving, as opposed to relaxation of borrowing constraints. In particular, consumption sensitivity exists even in the absence of refinancing and occurs only among less leveraged households and younger households who behave like quot;buffer stockquot; consumers (Gourinchas and Parker, 2002). Finally, consumption does not respond to predictable changes in housing wealth, which is inconsistent with liquidity constraints. The results highlight the importance of housing wealth in influencing consumption even in the absence of refinancing and relaxation of credit constraints.
Author: Callum Jones
Publisher: International Monetary Fund
ISBN: 1484374983
Category : Business & Economics
Languages : en
Pages : 51
Get Book Here
Book Description
We evaluate and partially challenge the ‘household leverage’ view of the Great Recession. In the data, employment and consumption declined more in states where household debt declined more. We study a model where liquidity constraints amplify the response of consumption and employment to changes in debt. We estimate the model with Bayesian methods combining state and aggregate data. Changes in household credit limits explain 40 percent of the differential rise and fall of employment across states, but a small fraction of the aggregate employment decline in 2008-2010. Nevertheless, since household deleveraging was gradual, credit shocks greatly slowed the recovery.
