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作者

来源

JOURNAL OF REAL ESTATE FINANCE AND ECONOMICS,Vol.58,Issue1,P.51-79

语言

英文

关键字

Consumption; Housing wealth; Home-equity credit; Liquidity constraint; E21; R22; G21; EQUITY; CONSTRAINTS; RESPOND; PRICES; HOME

作者单位

[Zhu, Bing] Univ Reading, Henley Business Sch, Real Estate & Planning, Reading RG6 6UD, Berks, England. [Li, Lingxiao] Calif State Univ Fullerton, Mihaylo Coll Business & Econ, Dept Finance, 800 N State Coll Blvd, Fullerton, CA 92834 USA. [Downs, David H.] Virginia Commonwealth Univ, Kornblau Inst, 301 W Main St, Richmond, VA 23284 USA. [Downs, David H.] Virginia Commonwealth Univ, FIRE Dept, 301 W Main St, Richmond, VA 23284 USA. [Sebastian, Steffen] Univ Regensburg, IREBS Int Real Estate Business Sch, Univ Str 31, D-93053 Regensburg, Germany. Zhu, B (reprint author), Univ Reading, Henley Business Sch, Real Estate & Planning, Reading RG6 6UD, Berks, England. E-Mail: B.Zhu@henley.reading.ac.uk; lingli@fullerton.edu; dhdowns@vcu.edu; steffen.sebastian@wiwi.uni-regensburg.de

摘要

This paper provides new evidence on the effect of housing wealth on consumption by focusing on the impact of home-equity extraction. We develop a household consumption decision model to illustrate the differential effect of home-equity extraction, relative to net home equity, on consumption. The home-equity extraction channel is also shown to vary with household-level borrowing constraints. Based on U.S. household survey data and an instrumental-variables approach, our empirical results validate model predictions. We find that the marginal propensity to consume is two times higher for the home-equity extraction channel relative to the conventional housing wealth effect. The consumption effect of home-equity extraction is more than 2.5 times greater for liquidity-constrained households than for unconstrained households. These results are even more pronounced in the case of durable goods consumption for constrained borrowers.