scholarly journals THE EFFECT OF HOUSING WEALTH LOSSES ON SPENDING IN THE GREAT RECESSION

2018 ◽  
Vol 57 (2) ◽  
pp. 972-996 ◽  
Author(s):  
Marco Angrisani ◽  
Michael Hurd ◽  
Susann Rohwedder
Keyword(s):  
Great Recession ◽  
Housing Wealth ◽  
The Great Recession

scholarly journals Does Home Production Replace Consumption Spending? Evidence from Shocks in Housing Wealth in the Great Recession

2020 ◽  
Vol 102 (1) ◽  
pp. 113-128 ◽  
Author(s):  
Jim Been ◽  
Susann Rohwedder ◽  
Michael Hurd
Keyword(s):  
Life Cycle ◽  
Panel Data ◽  
Time Use ◽  
Great Recession ◽  
Well Being ◽  
Elasticity Of Substitution ◽  
Housing Wealth ◽  
Home Production ◽  
The Great Recession ◽  
Prior Literature

Becker's theory of home production suggests substitutability between consumption spending and home production. Using panel data with detailed information on spending and time use, we analyze households' ability to replace consumption spending by home-produced counterparts. Keeping wages fixed and changing lifetime resources by the shock to housing wealth during the Great Recession, we estimate an elasticity of substitution that is consistent with a life cycle Becker model. However, we estimate that only about 11% of total spending is replaceable by home production, which, in contrast to prior literature, makes it unlikely that home production fully mitigates the consequences of wealth shocks to well-being.

scholarly journals A Crisis of Missed Opportunities? Foreclosure Costs and Mortgage Modification During the Great Recession

2020 ◽  
Author(s):  
Stuart Gabriel ◽  
Matteo Iacoviello ◽  
Chandler Lutz
Keyword(s):  
Side Effects ◽  
Great Recession ◽  
Housing Wealth ◽  
Missed Opportunities ◽  
Adverse Side Effects ◽  
The Great Recession ◽  
Time Costs ◽  
Policy Interventions ◽  
Mortgage Credit ◽  
The Impact

Abstract We investigate the impact of Great Recession policies in California that substantially increased lender pecuniary and time costs of foreclosure. We estimate that the California Foreclosure Prevention Laws (CFPLs) prevented 250,000 California foreclosures (a 20% reduction) and created $\$$300 billion in housing wealth. The CFPLs boosted mortgage modifications and reduced borrower transitions into default. They also mitigated foreclosure externalities via increased maintenance spending on homes that entered foreclosure. The CFPLs had minimal adverse side effects on the availability of mortgage credit for new borrowers. Altogether, findings suggest that policy interventions that keep borrowers in their homes may be broadly beneficial during times of widespread housing distress.

Sign in / Sign up

Export Citation Format

Share Document