We quantify the role of heterogeneity in households' financial constraints in explaining the large decline in consumption between 2006 and 2009. Using household-level data, we show that in addition to a direct effect of changes in house prices, there are sizable indirect effects from general...

We quantify the role of heterogeneity in households’ financial constraints in explaining the large decline in consumption between 2006 and 2009. Using household-level data, we show that in addition to a direct effect of changes in house prices, there are sizable indirect effects from general...

We provide new evidence on the causal effects of housing wealth on consumer behavior. To overcome the empirical challenge of non-random housing wealth changes, we exploit the unexpected announcement of China's newest national-level new area--Xiong'an New Area--on April 1, 2017 as an exogenous...

We provide new evidence on the causal effects of housing wealth on consumer behavior. To overcome the empirical challenge of non-random housing wealth changes, we exploit the unexpected announcement of China's newest national-level new area --Xiong'an New Area--on April 1, 2017 as an exogenous...

We construct a novel dataset tracking households across property purchases covering 25 years of moves within the U.S. We find that information frictions in residential real estate markets cause movers with larger exogenous housing wealth to overpay for their next house, relative to both time...