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http://bura.brunel.ac.uk/handle/2438/7082| Title: | Re-examining the decline in the US saving rate: The impact of mortgage equity withdrawal |
| Authors: | Caporale, GM Costantini, M Paradiso, A |
| Keywords: | Saving rate;Mortgage equity withdrawal;Asset prices;Mortgage rates;Vector Error Correction;Impulse response analysis |
| Issue Date: | 2012 |
| Publisher: | Brunel University |
| Citation: | Economics and Finance Working Paper, Brunel University, 12-08, Sep 2012 |
| Abstract: | In this paper we examine the role of mortgage equity withdrawal in explaining the decline of the US saving rate, since when house prices rise and mortgage rates are low, homeowners have an incentive to withdraw housing equity and this may affect the saving rate. We estimate a Vector Error Correction (VEC) model including the sav- ing rate, asset prices, equity withdrawal and interest rates and find that indeed mortgage equity withdrawal is a key determinant of the observed saving pattern. |
| URI: | http://bura.brunel.ac.uk/handle/2438/7082 |
| Appears in Collections: | Economics and Finance Publications Dept of Economics and Finance Research Papers |
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