We study how homeowners' consumption responds to a negative and anticipated disposable income shock: the beginning of … the amortisation period on interest-only mortgages. We identify spending behavior through an event study approach, by … matching loan-level data that covers the universe of Danish mortgages to detailed administrative registries on borrowers. In …

is not consumption. We propose an alternative borrow-to-invest motive by which house price gains affect household … reducing access to leveraged returns and so reducing lifetime resources, rather than through consumption smoothing. …

is not consumption. We propose a borrow-to-invest motive by which house price gains affect household spending on …, rather than through consumption smoothing. We test this motive by comparing responses in different categories of spending …

is not consumption. We propose an alternative borrow-to-invest channel by which house price gains affect household … through reducing access to leveraged returns and so reducing lifetime resources, rather than through consumption smoothing. …

is not consumption. We propose an alternative borrow-to-invest channel by which house price gains affect household … through reducing access to leveraged returns and so reducing lifetime resources, rather than through consumption smoothing. …

is not consumption. We propose a borrow-to-invest motive by which house price gains affect household spending on …, rather than through consumption smoothing. We test this motive by comparing responses in different categories of spending …

is not consumption. We propose an alternative borrow-to-invest motive by which house price gains affect household … reducing access to leveraged returns and so reducing lifetime resources, rather than through consumption smoothing. …

This paper employs Swedish data on households' stock holdings to investigate how consumption responds to changes in … a flat 5 percent for the rest of the distribution. Households' consumption is significantly more responsive to dividend …