Replication data for: Housing Wealth and Consumption: Evidence from Geographically-Linked Microdata
Principal Investigator(s): View help for Principal Investigator(s) Aditya Aladangady
Version: View help for Version V1
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| Replication_Code | 12/06/2019 05:22:PM | ||
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text/plain | 14.6 KB | 12/06/2019 12:22:PM |
Project Citation:
Aladangady, Aditya. Replication data for: Housing Wealth and Consumption: Evidence from Geographically-Linked Microdata. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-06. https://doi.org/10.3886/E116166V1
Project Description
Summary:
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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.
Scope of Project
JEL Classification:
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D12 Consumer Economics: Empirical Analysis
D14 Household Saving; Personal Finance
E21 Macroeconomics: Consumption; Saving; Wealth
R31 Housing Supply and Markets
D12 Consumer Economics: Empirical Analysis
D14 Household Saving; Personal Finance
E21 Macroeconomics: Consumption; Saving; Wealth
R31 Housing Supply and Markets
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