Wealth Effects or Economic Barometer: Why Do House Prices Matter for Psychological Health?

Anita Ratcliffe

No 2012014, Working Papers from The University of Sheffield, Department of Economics

Abstract: This paper investigates whether house prices are linked to mental health outcomes, and whether this association arises through wealth effects or whether third factors such as area amenities or economic conditions drive both house prices and psychological health. These alternative explanations have contrasting implications for the effect of house prices on the well-being of homeowners and non-homeowners, which are exploited in the empirical analysis. I document a positive association between house prices and the mental health of homeowners and non-homeowners, which is not consistent with wealth effects. Further analysis indicates that house prices matter via a role as an economic barometer.

Keywords: Psychological health; house prices; wealth; economic conditions (search for similar items in EconPapers)
JEL-codes: D12 I1 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2012
New Economics Papers: this item is included in nep-hea and nep-ure
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Citations: View citations in EconPapers (1)

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http://www.shef.ac.uk/economics/research/serps/articles/2012_014.html First version, 2012 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:shf:wpaper:2012014

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