House Prices and Consumer Spending

By David Berger, Veronica Guerrieri, Guido Lorenzoni, Joseph Vavra. 2015

362 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/2929c02eb29ac0f2756488a557958ee81375e48c

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Citations in the corpus

This Time It's Different: The Role of Women's Employment in a Pandemic Recession (2020, background): “A recent body of macroeconomic work demonstrates the central role of MPC distributions for the transmission of macroeconomics shocks (e.g., Berger et al. 2017, Auclert 2019, Auclert, Bardóczy, and Rognlie 2020, Patterson 2019).”
International Credit Supply Shocks (2017, neutral): “Berger et al. (2015) use US micro data to quantify the elasticity of consumption to changes in housing wealth. Kaplan et al. (2016) show that this elasticity depends on the source of the shock moving house prices.”
Housing Wealth Effects: The Long View (2018, positive): “Berger et al. (2018) show using an incomplete markets model that a household’s consumption response to changes in housing wealth at low levels of leverage are driven by a substitution effect, an endowment effect, and an income effect.”
Social Networks and Housing Markets (2018, neutral): “These findings can provide an important input into the vast research efforts across the social sciences to understand the effects of housing booms and busts on outcomes such as consumer spending (Campbell and Cocco, 2007; Mian et al., 2013; Berger et al., 2015), unemployment (Mian and Sufi, 2014), r”
Regional Heterogeneity and Monetary Policy (2019, neutral): “For example, Berger et al. (2015) argue that changes in the distribution of household mortgage debt and leverage during the housing boom likely contributed to the large decline in spending when house prices subsequently crashed.4 Interestingly, we show here that these same leverage patterns also ham”
Monetary Policy and the Redistribution Channel (2017, positive): “(2014) to estimate the MPCs of hand-to-mouth households, and by Berger et al. (2015) to estimate MPCs at different levels of housing wealth.”
Inequality and Aggregate Demand (2016, neutral): “7 A closely related literature has used sufficient statistics to bring the predictions of these models in line with existing evidence from micro data (Auclert 2017, Berger et al. 2018). By demonstrating how to embed these sufficient statistics into a general equilibrium analysis, we hope to provide ”
House Prices, Local Demand, and Retail Prices (2019, neutral): “However, Berger et al. (2016) show that if borrowing constraints and realistic substitution effects are added to this framework, then there can be substantial consumption response to house price movements. Our empirical results join a growing body of work consistent with this more general framework,”
Consumer Spending during Unemployment: Positive and Normative Implications (2019, neutral): “, Berger et al. 2018). Our estimate of the exogenous liquidity constraint a of 4.5 months of income is about twice the magnitude of unsecured credit lines reported in the SCF (Kaplan and Violante 2014). The model also generates job search patterns consistent with the prior literature in two ways. Fi”
The Intertemporal Keynesian Cross (2018, neutral): “This was shown, for instance, by Kaplan and Violante (2014) in the context of fiscal policy, by Auclert (2017) for monetary policy, and by Berger et al. (2018) for house price changes.”
MPC Heterogeneity and Household Balance Sheets (2016, neutral): “1 See, for instance, Auclert (2019); Auclert, Rognlie, and Straub (2018); Berger et al. (2018); and Kaplan, Moll, and Violante (2018).”
Saving Behavior Across the Wealth Distribution: The Importance of Capital Gains (2019, neutral): “To be clear, even though total consumption is unchanged, households will sell off housing to increase their non-durable consumption as long as η > 0, i.e. there is a positive housing wealth effect on non-durable consumption (Berger et al., 2018).”
What Happened: Financial Factors in the Great Recession (2018, neutral): “In each case, the spread measures the difference between the return on the security and the return on a similar maturity government bond.(6) The spread for asset-backed commercial paper increases roughly 150 basis points from early 2007 to the end of that year, reflecting the problems in that market”
Household Leverage and the Recession (2011, neutral): “(14)In contrast, in partial equilibrium house price changes would have wealth effects on household consumption, as shown in Berger et al. (2018).”
Non-durable consumption and housing net worth in the Great Recession: Evidence from easily accessible data (2016, methodology): “To make progress, in this section we build on the analysis of Berger et al. (2015) to show that the elasticity of expenditures to both house prices and the housing net worth shock can be given a structural interpretation and expressed in terms of observables. A simple back-of-the-envelope calculatio”
The Aggregate Implications of Regional Business Cycles (2019, neutral): “As house prices change, it can generate both wealth effects and liquidity effects that can drive household demand (Berger et al. (2018) and Mian and Sufi (2014)).”
The Housing Boom and Bust: Model Meets Evidence (2017, neutral): “This elasticity is broadly consistent with the rule of thumb advocated by Berger et al. (2017), in which only the wealth effect is operative.”
Mortgage Debt, Consumption, and Illiquid Housing Markets in the Great Recession (2017, background): “As in Berger et al. (2015), a change in house prices induces both an endowment and a collateral effect.”