Who Withdraws Housing Equity and Why

Datos Bibliográficos

ID9722160
AutoresANDREW BENITO (International Monetary Fund, autor de correspondencia)
Año2009
Volumen76
Número301
Páginas51-70
Fecha de publicación2009-02-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2008.00693.x
OpenAlexW2016969247
IdiomaEN
Citas recibidas15
Referencias citadas20

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

Actuarial science · Business · Economics · Equity (law) · Equity capital markets · Home equity · Political science · Private equity · Finance · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism