IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/17127.html
   My bibliography  Save this paper

Winners and Losers of House Price Booms and Busts

Author

Listed:
  • Low, Hamish
  • Sánchez-Marcos, Virginia

Abstract

Fluctuations in house price generate substantial heterogeneity in the price of purchase of similar dwellings depending on the time of purchase. These differences in the price of purchase have large effects on life-time consumption and on income-net-of- housing-costs. We document these effects using the large house price fluctuations during the recent housing boom-bust in Spain. Households can mitigate these impacts through changing labor supply which we estimate using an IV strategy. Men work more in response to higher house prices, whereas the correlation of house prices and labor supply for women is driven by selection: households where women work more, buy more expensive houses.

Suggested Citation

  • Low, Hamish & Sánchez-Marcos, Virginia, 2022. "Winners and Losers of House Price Booms and Busts," CEPR Discussion Papers 17127, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17127
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP17127
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

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

    More about this item

    Keywords

    House price fluctuations; Labor supply; Mortgage costs;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

    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:cpr:ceprdp:17127. 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: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    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.