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http://hdl.handle.net/10419/61344
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| Title: | | Re-examining the decline in the US saving rate: The impact of mortgage equity withdrawal  |
| Authors: | | Caporale, Guglielmo Maria Costantini, Mauro Paradiso, Antonio |
| Issue Date: | | 2012 |
| Series/Report no.: | | Discussion Papers, German Institute for Economic Research, DIW Berlin 1232 |
| 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 saving rate, asset prices, equity withdrawal and interest rates and find that indeed mortgage equity withdrawal is a key determinant of the observed saving pattern. |
| Subjects: | | Saving rate Mortgage equity withdrawal Asset prices Mortgage rates Vector Error Correction Impulse response analysis |
| JEL: | | C32 E21 O51 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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