Using data from the Panel Study of Income Dynamics, this paper considers the mechanism by which changing house values impact U.S. household spending. The results suggest that house values affect consumption by serving as collateral for households to borrow against to smooth their spending. The...

Using data from the Panel Study of Income Dynamics, this paper examines how households' home equity extraction during the previous decade affected their spending and saving behavior.The study makes use of recently released 2009 housing and wealth data as well as the extensive data on household...

This paper uses panel data through 2011 to examine evidence of shifts in household balance sheet behavior following the financial crisis and Great Recession. The paper considers evidence of balance sheet repair through debt repayment as well as changes in the composition of households' balance...