Making the House a Home: The Stimulative Effect of Home Purchases on Consumption and Investment-Reference-Cited by-同舟云学术

Making the House a Home: The Stimulative Effect of Home Purchases on Consumption and Investment

Published:2022-07-05 Issue:1 Volume:36 Page:122-154
ISSN:0893-9454
Container-title:The Review of Financial Studies
language:en
Short-container-title:

Author:

Benmelech Efraim¹,Guren Adam²,Melzer Brian T³

Affiliation:

1. Kellogg School of Management, Northwestern University and NBER , USA

2. Boston University and NBER , USA

3. Tuck School of Business, Dartmouth College , USA

Abstract

Abstract We introduce and quantify a new channel through which the housing market affects household spending: the home purchase channel. Households spend on average $8,000 more on home-related durables and home improvements in the 2 years following a home purchase. Expenditures on nondurables and durables unrelated to the home remain unchanged or decrease modestly. The home purchase channel played a substantial role in the Great Recession, accounting for one-third of the decline in spending on home-related durables and home improvements from 2005 to 2010. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics,Finance,Accounting

Link

https://academic.oup.com/rfs/advance-article-pdf/doi/10.1093/rfs/hhac041/45047247/hhac041.pdf

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3. Holding Onto the Past: Previous Homes, Post-Move Housing Consumption, and the Great Recession;Journal of Real Estate Research;2023-09-14

4. The Ins and Outs of Selling Houses: Understanding Housing-Market Volatility;SSRN Electronic Journal;2023