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faced by consumers. We use the structure of an economy with collateralized household debt and housing markets to develop and …
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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...
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For the first five months of 2018, household savings moved up merely by 1.3% which is the bottom low for the last …
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