Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in … which housing price changes work as a wealth effect. In such models, windfall gains in housing always lead to positive … changes in consumption. However, this might constitute a fallacy of composition. Such models ignore that changes in housing …

Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in … which housing price changes work as a wealth effect. In such models, windfall gains in housing always lead to positive … changes in consumption. However, this might constitute a fallacy of composition. Such models ignore that changes in housing …

by owner-occupied housing whereas unsecured debt can be discharged according to bankruptcy regulations. We show that the …

The vast majority of household wealth in the U.S. is held in illiquid assets, primarily housing, making households … households are tempted to consume their liquid wealth but can use illiquid housing as a savings commitment device. The importance … of temptation and commitment is identified using data on consumption, liquid assets, and housing wealth over the life …

The extant literature regarding the effects of housing on stock investment shows inconsistent findings, either positive … or negative effects have been reported. This paper investigates the mechanisms by which housing affects household stock … and quantify the magnitudes of contemporaneous "wealth effects" and "crowd-out effects" of housing on household equity …

The extant literature regarding the effects of housing on stock investment shows inconsistent findings, either positive … or negative effects have been reported. This paper investigates the mechanisms by which housing affects household stock … and quantify the magnitudes of contemporaneous "wealth effects" and "crowd-out effects" of housing on household equity …

The vast majority of household wealth in the U.S. is held in illiquid assets, primarily housing, making households … households are tempted to consume their liquid wealth but can use illiquid housing as a savings commitment device. The importance … of temptation and commitment is identified using data on consumption, liquid assets, and housing wealth over the life …

This paper develops an open-economy DSGE model with a housing-market sector and a borrowing constraint. Contrary to … standard conventions, domestic households are allowed to invest in foreign housing and vice versa. Using Bayesian methods, the … model is applied to data for Hong Kong. The results show that Hong Kong’s housing market is quite open to foreign investment …