"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...

Any conversation regarding the current financial crisis must include a discussion of home prices. After dramatic home-price increases through the 1990's and early 2000's, U.S. home prices began a severe downturn during 2006. During this time period of significant price appreciation, as previous...