Showing 1 - 10 of 1,628
We examine the effect of rising U.S. house prices on borrowing and spending from 2002 to 2006. There is strong heterogeneity in the marginal propensity to borrow and spend. Households in low income zip codes aggressively liquefy home equity when house prices rise, and they increase spending...
Persistent link: https://www.econbiz.de/10013053478
Some commentators have argued that the housing crisis may harm labor markets because homeowners who owe more than their homes are worth are less likely to move to places that have productive job opportunities. I show that, in the available data, negative equity does not make homeowners less...
Persistent link: https://www.econbiz.de/10013131307
Does credit availability exacerbate asset price inflation? Are there long run consequences? During the farm land price boom and bust before the Great Depression, we find that credit availability directly inflated land prices. Credit also amplified the relationship between positive fundamentals...
Persistent link: https://www.econbiz.de/10013107219
Using individual-level data on homeowner debt and defaults from 1997 to 2008, we show that borrowing against the ….S. household leverage from 2002 to 2006 and the increase in defaults from 2006 to 2008. Employing land topology-based housing …
Persistent link: https://www.econbiz.de/10013151131
household of only three people, in 1850 household size was twice that figure. Further, both the number of children and the … number of adults in a household have fallen dramatically. We develop a simple theory of household size where living with … others is beneficial solely because the costs of household public goods can be shared. In other words, we abstract from intra …
Persistent link: https://www.econbiz.de/10013155024
. Information treatments about current and next year's interest rates have a strong effect on household expectations but treatments …
Persistent link: https://www.econbiz.de/10012840847
Asset prices plunged between 2007 and 2010 but then rebounded from 2010 to 2016. The most telling finding is that median wealth plummeted by 44 percent over years 2007 to 2010. The inequality of net worth, after almost two decades of little movement, went up sharply from 2007 to 2010, and...
Persistent link: https://www.econbiz.de/10012941966
In this paper I analyze the pattern of saving behavior by U.S. households, using the Consumer Expenditure (CEX) Survey. The analysis' main goal is to explain the decline in aggregate personal saving in the United States in the 1980s. I estimate a typical' saving-age profile and identify...
Persistent link: https://www.econbiz.de/10012763405
This paper explores the relationship between household marginal income tax rates, the set of assets that households own … surveys. The empirical findings suggest that a household's marginal tax rate has an important effect its asset allocation … decisions. The probability that a household owns tax-advantaged assets is strongly related to its tax rate on ordinary income …
Persistent link: https://www.econbiz.de/10012763785
While financial knowledge has been linked to improved financial behavior, there is little consensus on the value of financial education, in part because rigorous evaluation of various programs has yielded mixed results. However, given the heterogeneity of financial education programs in the...
Persistent link: https://www.econbiz.de/10013052686