The DOI matches its Crossref record; 39 of the 39 references it cites were found in a registry or an index.
Housing Wealth and Consumption: Evidence from Geographically Linked Microdata
Abstract
Rising home values also raise the cost of living, offsetting their impact on consumption. However, additional home equity collateral can loosen borrowing constraints, increasing spending for households that value their current endowment of housing highly. I use geographically linked microdata to exploit regional heterogeneity in housing markets and identify the causal effect of house price fluctuations on consumer spending. A $1 increase in home values leads to a $0.047 increase in spending for homeowners, but a negligible response for renters. Results reflect large responses among credit constrained households, suggesting looser borrowing constraints are a primary driver of the MPC out of housing wealth. (JEL D12, D14, E21, R31)
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Cites
Credit Rationing in Markets with Imperfect Information
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House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle
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The Consequences of Mortgage Credit Expansion: Evidence from the U.S. Mortgage Default Crisis*
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Household Balance Sheets, Consumption, and the Economic Slump*
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Cited by
Ganong, P., & Noel, P. (2020) · American Economic Review · doi:10.1257/aer.20181243 · Cited by 201
Stock Market Returns and Consumption
DI MAGGIO, M., KERMANI, A., & MAJLESI, K. (2020) · The Journal of Finance · doi:10.1111/jofi.12968 · Cited by 199
Identifying the Benefits from Homeownership: A Swedish Experiment
Sodini, P., Van Nieuwerburgh, S., Vestman, R., & von Lilienfeld-Toal, U. (2016) · doi:10.3386/w22882 · Cited by 58
A day late and a dollar short: Liquidity and household formation among student borrowers
Goodman, S., Isen, A., & Yannelis, C. (2021) · Journal of Financial Economics · doi:10.1016/j.jfineco.2021.04.033 · Cited by 55
Household Mobility and Mortgage Rate Lock
Liebersohn, J., & Rothstein, J. (2024) · doi:10.3386/w32781 · Cited by 3
Metadata
- Authors
- Aladangady, A.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2017-11-01
- Volume
- 107
- Issue
- 11
- Pages
- 3415-3446
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W2766805021
- Cited by
- 292
- References
- 39
- FWCI
- 38.09
- Type
- journal article
- Language
- en
- Open access
- closed
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