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

Reference27 articles.

1. Housing wealth and consumption: Evidence from geographically-linked microdata;Aladangady,;American Economic Review,2017

2. Do house prices drive consumption growth? The coincident cycles of house prices and consumption in the UK;Attanasio,;Journal of the European Economics Association,2011

3. Booms and busts: Consumption, house prices and expectations;Attanasio,;Economica,2009

4. House prices and consumer spending;Berger,;Review of Economic Studies,2018

5. Stimulating housing markets;Berger,;Journal of Finance,2020

Cited by 10 articles. 订阅此论文施引文献订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献

1. House price rises and borrowing to invest;Journal of Economic Behavior & Organization;2024-07

2. THE INS AND OUTS OF SELLING HOUSES: UNDERSTANDING HOUSING‐MARKET VOLATILITY;International Economic Review;2024-03-05

3. Political Polarization Affects Households' Financial Decisions: Evidence from Home Sales;The Journal of Finance;2024-02-11

4. Volatility in Home Sales and Prices: Supply or Demand?;Journal of Urban Economics;2024-01

5. Bidder Beware: Intergenerational Wealth Transfers and Overpayment in Housing Markets;SSRN Electronic Journal;2024