Date of Award
6-2008
Document Type
Union College Only
Degree Name
Bachelor of Arts
Department
Economics
First Advisor
Stephen Schmidt
Language
English
Keywords
housing, regressions, slump, altered, appears
Abstract
Spillover effects of a troubled housing market have become increasingly relevant in the past few months. Many economists have hypothesized that a housing slump would lead to a subsequent slump in consumer spending. Using city-level data in the United States, obtained from 2001-2006, this paper finds that consumption is not altered by housing price fluctuations. Several approaches are taken to test this conclusion, including variations in OLS regressions and TSLS regressions. The finding is universal that there appears to be no housing wealth effect regardless of the magnitude of housing appreciation or depreciation.
Recommended Citation
Haynes, Thomas P., "The wealth effect of the housing market" (2008). Honors Theses. 1470.
https://digitalworks.union.edu/theses/1470