Re-examining the decline in the US saving rate: The impact of mortgage equity withdrawal

This paper investigates the effect of mortgage equity withdrawal on saving in the US over the period 1993–2011. A multivariate time series analysis based on a vector error correction model (VECM) is carried out. The saving rate, mortgage equity withdrawal, net wealth, interest rates and inflation are included in the empirical model. The results show that the equity withdrawal mechanism plays a relevant role in explaining the saving rate pattern.

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Year of publication:	2013
Authors:	Caporale, Guglielmo Maria ; Costantini, Mauro ; Paradiso, Antonio
Published in:	Journal of International Financial Markets, Institutions and Money. - Elsevier, ISSN 1042-4431. - Vol. 26.2013, C, p. 215-225
Publisher:	Elsevier
Subject:	Saving rate \| Mortgage equity withdrawal \| Net wealth \| Mortgage interest rates \| Vector error correction model

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Type of publication:	Article
Classification:	C32 - Time-Series Models ; E21 - Consumption; Saving ; O51 - U.S.; Canada
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010702764