IDEAS home Printed from https://ideas.repec.org/a/cai/reofsp/reof_101_0193.html
   My bibliography  Save this article

La fin de l'American Dream

Author

Listed:
  • Alain Sand-Zantman

Abstract

After an exceptionally long period of growth on the housing market, the activity has turned over from the beginning of 2006. It seems deeply engaged in a severe adjustment but we suppose this will not lead the economy in a global recession. After a presentation of the past trends (activity, house prices, wealth, mortgage debt), we try to profile these new homeowners and understand the circumstances which allowed households to become owners. The increase of debt could not have taken place if some specific conditions had not been satisfied (low interest rates, high liquidity because of the expansion of the secondary market, creativity of banks to get back the limits of indebtedness). With the increase of interest rates and the slowdown of prices, mortgage equity withdrawal become less attractive and the weakest households could be trapped in their financial commitment, coming back to the hard reality. JEL codes: D10, O16.

Suggested Citation

  • Alain Sand-Zantman, 2007. "La fin de l'American Dream," Revue de l'OFCE, Presses de Sciences-Po, vol. 101(2), pages 193-225.
    • Handle: RePEc:cai:reofsp:reof_101_0193
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REOF_101_0193
    Download Restriction: free
    File URL: http://www.cairn.info/revue-de-l-ofce-2007-2-page-193.htm
    Download Restriction: free
    ---><---

    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:reofsp:reof_101_0193. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-de-l-ofce.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.