Re-examining the decline in the US saving rate: The impact of mortgage equity withdrawal

Guglielmo Maria Caporale, Mauro Costantini and Antonio Paradiso ()

Journal of International Financial Markets, Institutions and Money, 2013, vol. 26, issue C, 215-225

Abstract: This paper investigates the effect of mortgage equity withdrawal on saving in the US over the period 1993–2011. A multivariate time series analysis based on a vector error correction model (VECM) is carried out. The saving rate, mortgage equity withdrawal, net wealth, interest rates and inflation are included in the empirical model. The results show that the equity withdrawal mechanism plays a relevant role in explaining the saving rate pattern.

Keywords: Saving rate; Mortgage equity withdrawal; Net wealth; Mortgage interest rates; Vector error correction model (search for similar items in EconPapers)
JEL-codes: C32 E21 O51 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (5)

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Working Paper: Re-examining the Decline in the US Saving Rate: The Impact of Mortgage Equity Withdrawal (2012)
Working Paper: Re-examining the Decline in the US Saving Rate: The Impact of Mortgage Equity Withdrawal (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:26:y:2013:i:c:p:215-225

DOI: 10.1016/j.intfin.2013.06.001

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