Who Withdraws Housing Equity and Why

Dados Bibliográficos

ID9722160
AutoresANDREW BENITO (International Monetary Fund, autor correspondente)
Ano2009
Volume76
Fascículo301
Páginas51-70
Data de publicação2009-02-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoEconomica (JOURNAL)
Identificadores do periódicoISSN: 0013-0427 • E-ISSN: 1468-0335
EditoraWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2008.00693.x
OpenAlexW2016969247
IdiomaEN
Citações recebidas15
Referências 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