Disney, Richard and Gathergood, John (2011) House price growth, collateral constraints and the accumulation of homeowner debt in the United States. The B E Journal of Macroeconomics, 11 (1). ISSN 1935-1690

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Abstract

Using household panel data, we present evidence on the relationship between house price growth and household indebtedness among homeowners in the United States for the period 1999 to 2007. We posit an underlying mechanism whereby rising housing wealth allows households to increase their collateralised borrowing. Over the period, we find that roughly one-fifth of the growth in indebtedness among U.S. households can be explained by rising house prices. This housing wealth–indebtedness link is stronger among the minority of households that were initially “collateral constrained.”

Item Type:	Article
Keywords:	housing wealth; collateral; unsecured debt; housing equity
Schools and Departments:	School of Business, Management and Economics > Economics
Subjects:	H Social Sciences > HB Economic theory. Demography
Depositing User:	Catrina Hey
Date Deposited:	10 Jun 2013 09:35
Last Modified:	10 Jun 2013 09:35
URI:	http://srodev.sussex.ac.uk/id/eprint/45181

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