Essays in Household Finance
關於家庭金融的論文
Student thesis: Doctoral Thesis
Author(s)
Related Research Unit(s)
Detail(s)
| Awarding Institution | |
|---|---|
| Supervisors/Advisors |
|
| Award date | 17 Jun 2024 |
Link(s)
| Permanent Link | https://scholars.cityu.edu.hk/en/theses/theses(e6a10bd5-b737-448a-9e16-c203a3f4e9f7).html |
|---|---|
| Other link(s) | Links |
Abstract
This thesis consists of two chapters on the effect of local house price experiences on households’ financial decision-making.
The first chapter examines the effect of local house price experiences on households’ consumption decisions. I find that a one-standard-deviation increase in experienced price growth (a weighted average of past price growth in local housing markets) leads to a 2 to 6 percentage points more real spending of households. Results hold when using experienced price growth of geographically distant relatives as an instrument. Effects are similar for homeowners and renters. Additionally, younger renters spend more on food than older renters when experiencing higher local price growth. These findings are consistent with higher experiences increasing households’ expectations about future house prices and discouraging renters from homeowning.
The second chapter examines the effect of local house price experiences on household labor supply using household-level data on labor income and hours worked from 1980. I find that a within-household one-standard-deviation increase in experienced price growth (a weighted average of past price growth in local housing markets) leads to a 1 to 3 percentage points increase in households’ real labor income. Results hold when using geographically distant relatives’ experienced price growth as an instrument. Effects are similar for homeowners and renters and less pronounced for sophisticated households. Additional analyses reveal a positive relationship between experienced price growth and households’ hours worked.
The first chapter examines the effect of local house price experiences on households’ consumption decisions. I find that a one-standard-deviation increase in experienced price growth (a weighted average of past price growth in local housing markets) leads to a 2 to 6 percentage points more real spending of households. Results hold when using experienced price growth of geographically distant relatives as an instrument. Effects are similar for homeowners and renters. Additionally, younger renters spend more on food than older renters when experiencing higher local price growth. These findings are consistent with higher experiences increasing households’ expectations about future house prices and discouraging renters from homeowning.
The second chapter examines the effect of local house price experiences on household labor supply using household-level data on labor income and hours worked from 1980. I find that a within-household one-standard-deviation increase in experienced price growth (a weighted average of past price growth in local housing markets) leads to a 1 to 3 percentage points increase in households’ real labor income. Results hold when using geographically distant relatives’ experienced price growth as an instrument. Effects are similar for homeowners and renters and less pronounced for sophisticated households. Additional analyses reveal a positive relationship between experienced price growth and households’ hours worked.
