PSID replication data (1999-2017) and codes for paper on "Liquidity Constraints in the U.S. Housing Market" by Corina Boar, Denis Gorea and Virgiliu Midrigan

Name: PSID replication data (1999-2017) and codes for paper on "Liquidity Constraints in the U.S. Housing Market" by Corina Boar, Denis Gorea and Virgiliu Midrigan
Published: 2021-07-19
License: This work is licensed under an Other license created by the PSID, namely that you agree not to redistribute data or other materials without the written agreement of ICPSR, unless: 1. You serve as the OFFICIAL or DESIGNATED REPRESENTATIVE at an ICPSR MEMBER INSTITUTION and are assisting AUTHORIZED USERS with obtaining data, or 2. You are collaborating with other AUTHORIZED USERS to analyze the data for research or instructional purposes.

Principal Investigator(s): View help for Principal Investigator(s) Corina Boar, New York University and NBER; Denis Gorea, Danmarks Nationalbank; Virgiliu Midrigan, New York University and NBER

Version: View help for Version V1

Name	File Type	Size	Last Modified
README_psid.pdf	application/pdf	95.1 KB	07/19/2021 12:39:AM
data_replication.zip	application/zip	151.4 MB	07/19/2021 12:41:AM

Project Citation:

Boar, Corina , Gorea, Denis, and Midrigan, Virgiliu. PSID replication data (1999-2017) and codes for paper on “Liquidity Constraints in the U.S. Housing Market” by Corina Boar, Denis Gorea and Virgiliu Midrigan . Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-07-19. https://doi.org/10.3886/E145381V1

Project Description

Summary:

We study the severity of liquidity constraints in the U.S. housing market using a

life-cycle model with uninsurable idiosyncratic risks in which houses are illiquid, but

agents can extract home equity by refinancing their mortgages. The model implies that

four-fifths of homeowners are liquidity constrained and willing to pay an average of 13

cents to extract an additional dollar of liquidity from their home. Most homeowners

value liquidity for precautionary reasons, anticipating the possibility of income declines

and the need to make mortgage payments. The model reproduces well the observed

response of consumption to tax rebates and mortgage relief programs and predicts large

welfare gains from policies aimed at providing temporary liquidity relief to homeowners.

Scope of Project

Subject Terms: PSID; Housing

Related Publications

Download this project

Published Versions

V1 [2021-07-19]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.