Publication type
Journal Article
Author
Publication date
June 1, 2009
Abstract:
The decision to extract home equity is examined using household-level data for the UK over 1993-2003. At its peak during the period, around 1-in-10 homeowners withdraw equity per year. Little is known about this financial decision. I find that the equity withdrawal decision conforms to predictions from the standard life-cycle framework and models that predict its use as a financial buffer. The paper also estimates responses to the large house price appreciation and significant reductions in mortgage rates seen during the period.
Published in
Economica
Volume
Volume: 76 (301):51-70
DOI
http://dx.doi.org/10.1111/j.1468-0335.2008.00693.x
Subjects
Notes
Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*
#513254