EconPapers    
Economics at your fingertips  
 

House Prices and Risk Sharing

Dmytro Hryshko (), Maria Luengo-Prado () and Bent Sorensen

No 2010-16, Working Papers from University of Alberta, Department of Economics

Abstract: Homeowners in the Panel Study of Income Dynamics are able to maintain a high level of consumption following job loss (or disability) in periods of rising local house prices while the consumption drop for homeowners who lose their job in times of lower house prices is substantial. These results are consistent with homeowners being able to access wealth gains when housing appreciates as witnessed by their ability to smooth consumption more than renters. A calibrated model of endogenous homeownership and consumption is able to reproduce the patterns in the data quite well and provides an interpretation of the empirical results.

Keywords: job displacement; disability; housing collateral (search for similar items in EconPapers)
JEL-codes: D91 E21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
Date: 2010-09-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed

Downloads: (external link)
https://sites.ualberta.ca/~econwps/2010/wp2010-16.pdf Full text (application/pdf)

Related works:
Journal Article: House prices and risk sharing (2010) Downloads
Working Paper: House Prices and Risk Sharing (2010) Downloads
Working Paper: House prices and risk sharing (2010) Downloads
Working Paper: House prices and risk sharing (2009) Downloads
Working Paper: House Prices and Risk Sharing (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:albaec:2010_016

Access Statistics for this paper

More papers in Working Papers from University of Alberta, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Joseph Marchand ().

 
Page updated 2019-04-17
Handle: RePEc:ris:albaec:2010_016