How do House Prices Affect Consumption? Evidence from Micro Data

By John Y. Campbell, João F. Cocco. 2007

1,240 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/40c95b8d9978433400a7c032f37c34d140990bb6

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Finance

Citations in the corpus

Liquidity versus Wealth in Household Debt Obligations: Evidence from Housing Policy in the Great Recession (2020, methodology): “The model contains one simple addition to the standard life-cycle consumption model in Carroll et al. (2018): households own a home with a long-term mortgage and can only borrow against their home equity subject to a collateral constraint.”
Do Family Wealth Shocks Affect Fertility Choices? Evidence from the Housing Market (2013, result): “Many authors, including Campbell and Cocco (2007), Case, Quigley, and Shiller (2005), Hurst and Stafford (2004), and Lehnert (2003), have found that housing wealth affects consumption.18 Our results add to this literature by showing that the recent severe declines in the housing market also may…”
How Large are Housing and Financial Wealth Effects? A New Approach (2011, background): “On the other hand, Campbell and Cocco (2006) also use British data (this time, from the U.K. Family Expenditure Survey and from regional house price surveys), but nd a large housing wealth e ect, which is di erent for young and old households; they nd a statistically signi cant elasticity of…”
House Prices and Economic Growth (2011, methodology): “Campbell and Cocco (2007) include time dummies in regressions, which, however, only control for common factors that affect all households to the same extent.”
Housing Wealth Effects: The Long View (2018, background): “Other empirical estimates for the recent period include Hurst and Stafford (2004), Campbell and Cocco (2007), Carroll et al. (2011), Attanasio et al. (2009), 2011 Attanasio et al. (2011), Calomiris et al. (2013), Cooper (2013), DeFusco (2018), Kaplan et al. (2020), and Liebersohn (2017).”
House Prices, Home Equity-Based Borrowing, and the U.S. Household Leverage Crisis (2011, neutral): “For example, house price appreciation may have no effect on homeowner borrowing because the increase in home equity wealth is counter-balanced with a higher cost of future housing consumption (Sinai and Souleles (2005), Campbell and Cocco (2007)). On the other hand, if homeowners are creditconstrain”
What Drives Personal Consumption? The Role of Housing and Financial Wealth (2009, neutral): “The recent theoretical models of portfolio choice in presence of housing4 3Two other recent micro studies by Bostic, Gabriel, and Painter (2005) on American data and Campbell and Cocco (2006) on the UK data report elasticities of consumption with respect to wealth (rather than MPCWs).”