IDEAS home Printed from https://ideas.repec.org/a/taf/rjrhxx/v29y2020i1p68-88.html
   My bibliography  Save this article

Housing Wealth and Consumption Over the 2001–2013 Period: The Role of the Collateral Channel

Author

Listed:
  • Arthur Acolin

Abstract

This study estimates changes in the relationship between housing wealth and consumption among homeowners during the recent housing boom and bust in the United States, focusing on the period 2001-2007, during which house prices increased and financial innovations led to an increased availability of products enabling households to extract home equity; and on the period 2007-2013, during which house prices declined and home equity withdrawal products became largely unavailable. The estimated elasticity of consumption with regard to housing wealth increased in 2004 and 2007 (.06) relative to 2001 (.04). The estimated elasticities then decreased in 2010 and 2013 (to below .04). In addition, the increase was larger among borrowing constrained households than unconstrained households. No relationship between housing prices and consumption was found among renters. These additional tests for subpopulations support the hypothesis that the increase in consumption out of housing wealth occurred through the collateral channel.

Suggested Citation

  • Arthur Acolin, 2020. "Housing Wealth and Consumption Over the 2001–2013 Period: The Role of the Collateral Channel," Journal of Housing Research, Taylor & Francis Journals, vol. 29(1), pages 68-88, October.
    • Handle: RePEc:taf:rjrhxx:v:29:y:2020:i:1:p:68-88
    DOI: 10.1080/10527001.2020.1826664
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10527001.2020.1826664
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10527001.2020.1826664?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:rjrhxx:v:29:y:2020:i:1:p:68-88. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjrh20 .

    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.