NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Housing Wealth and Aggregate Saving

Jonathan Skinner

NBER Working Paper No. 2842
Issued in February 1989
NBER Program(s):   PE

The recent appreciation in housing value can have large effects on aggregate saving. This paper uses a simulation model to show that aggregate saving will decline substantially if life cycle homeowners spend down their housing windfalls. Homeowners with a bequest motive, however, may save more to assist their children in buying the now more expensive housing. To test whether families spend their housing capital gains, I use housing, income, and consumption data from the Panel Study of Income Dynamics. While a cross-section time-series regression implies that housing wealth does affect saving, a fixed-effects model finds no effect.

download in pdf format
   (285 K)

download in djvu format
   (187 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2842

Published:

  • Skinner, Jonathan. "Housing Wealth And Aggregate Saving," Regional Science and Urban Economics, 1989, v19(2), 305-324. citation courtesy of
  • Regional Science and Urban Economics, vol. 19, 1989, pp.305-324.

 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us