House Prices and Marital Stability

Farnham, Martin; Schmidt, Lucie; Sevak, Purvi

doi:10.1257/aer.101.3.615

Cited by 61 publications

(41 citation statements)

References 27 publications

(28 reference statements)

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“…Other studies have found that house prices have significant effects on educational choices (Lovenheim ; Lovenheim and Reynolds ) rates of childbirth (Lovenheim and Mumford ; Dettling and Kearney ), demand for long‐term care insurance (Davidoff ) and divorce (Farnham et al . ).…”

Section: Introductionmentioning

confidence: 97%

House Prices, Wealth Effects and Labour Supply

Disney

Gathergood

2017

Economica

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We examine the impact of house prices on labour supply decisions using UK microdata. We combine household survey data with local‐level house price measures and controls for local labour demand. Our microdata also allow us to control for individual level income expectations. We find significant house price effects on labour supply, consistent with leisure being a normal good. Labour supply responses to house prices are concentrated among young married female owners and older owners. This finding suggests that house prices affect the decisions of marginal workers in the economy. Our estimates imply that house prices are economically important in the participation decisions for these workers.

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Section: Introductionmentioning

confidence: 97%

House Prices, Wealth Effects and Labour Supply

Disney

Gathergood

2017

Economica

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“…We estimate the causal effect of house prices on health on the assumption that the geographic variation in the strength and timing of house price movements is conditionally exogenous to individual health. Recently, a large literature has exploited this approach to show that house price movements are important for a range of household activity including household consumption and saving (Campbell and Cocco, 2007;Disney et al, 2010;Attanasio et al, 2009), indebtedness (Hurst and Stafford, 2004), educational choices (Lovenheim, 2011;Lovenheim and Reynolds, 2013) rates of childbirth (Lovenheim and Mumford, 2013;Dettling and Kearney, 2014), demand for long-term care insurance (Davidoff, 2010) and divorce (Farnham et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

Do Wealth Shocks Affect Health? New Evidence from the Housing Boom

Fichera¹,

Gathergood

2016

Health Economics

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We exploit large exogenous changes in housing wealth to examine the impact of wealth gains and losses on individual health. In UK household, panel data house price increases, which endow owners with greater wealth, lower the likelihood of home owners exhibiting a range of non‐chronic health conditions and improve their self‐assessed health with no effect on their psychological health. These effects are not transitory and persist over a 10‐year period. Using a range of fixed effects models, we provide robust evidence that these results are not biased by reverse causality or omitted factors. For owners' wealth gains affect labour supply and leisure choices indicating that house price increases allow individuals to reduce intensity of work with commensurate health benefits. © 2016 The Authors. Health Economics Published by John Wiley & Sons, Ltd.

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“…13 As Love (2010) points out, this assumption is consistent with most parents' expectations. 14 For college graduates, Farnham et al (2011) find that divorces are also affected by past house-price changes. In particular, when house prices fall, homeowners can get locked into their homes, which makes trading the home and getting divorced very costly.…”

Section: The Modelmentioning

confidence: 99%

Housing Decision With Divorce Risk

Fischer

Khorunzhina

2019

Int Economic Review

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We build a life‐cycle model of housing decisions under divorce risk that predicts that the recent increase in divorce rates leads to reduced homeownership rates. The risk of a divorce triggers a precautionary‐savings motive. However, this motive is weaker when individuals can invest in owner‐occupied homes because homeowners' higher savings partially substitute for precautionary savings. When young, the larger asset accumulation due to divorce‐risk‐induced precautionary savings enables households to buy homes earlier, whereas the presence of transaction costs leads to reduced homeownership for middle‐aged and older households when divorce risk goes up.

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House Prices and Marital Stability

Cited by 61 publications

References 27 publications

House Prices, Wealth Effects and Labour Supply

House Prices, Wealth Effects and Labour Supply

Do Wealth Shocks Affect Health? New Evidence from the Housing Boom

Housing Decision With Divorce Risk

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