Liquidity constraints and housing prices: Theory and evidence from the VA Mortgage Program

Journal of Public Economics

Volumn 90, Issue 8-9, 2006, Pages 1579-1600

  Vigdor, Jacob L ^a  

^a DUKE UNIVERSITY   (United States)

Author keywords

Borrowing; Home ownership; Mortgage; Veterans

Indexed keywords

EID: 33746660816     PISSN: 00472727     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jpubeco.2005.09.010     Document Type: Article

References (40)

1. Artle R., and Varaiya P. Life cycle consumption and homeownership. Journal of Economic Theory 18 (1978) 38-58
2. Brueckner J.K. The downpayment constraint and housing tenure choice: a simplified exposition. Regional Science and Urban Economics 16 (1986) 519-525
3. Bruskin E., Sanders A.B., and Sykes D. The nonagency mortgage market: background and overview. In: Fabozzi F.J., Ramsey C., Ramirez F., and Marz M. (Eds). The Handbook of Nonagency Mortgage-Backed Securities (2000), Wiley, New York
4. Cameron S., and Taber C. Estimation of educational borrowing constraints using returns to schooling. Journal of Political Economy 112 (2004) 132-182
5. Capozza D.R., Green R.K., and Hendershott P.H. Taxes, mortgage borrowing and residential land prices. In: Aaron H., and Gale W. (Eds). Economic Effects of Fundamental Tax Reform (1996), Brookings Press
6. Carneiro P., and Heckman J.J. The evidence on credit constraints in post-secondary schooling. National Bureau of Economic Research Working Paper #9055 (2002)
7. Chah E.Y., Ramey V.A., and Starr R.M. Liquidity constraints and intertemporal consumer optimization: theory and evidence from durable goods. Journal of Money, Credit and Banking 27 (1995) 272-287
8. Collins W.J., and Margo R.A. Race and home ownership: a century-long view. Explorations in Economic History 38 (2001) 68-92
9. Deaton A. Understanding Consumption (1992), Oxford University Press, Oxford
10. Duca J.V., and Rosenthal S.S. Borrowing constraints and access to owner-occupied housing. Regional Science and Urban Economics 24 (1994) 301-322
11. Goodman J.L., and Itner J.B. The accuracy of home owners' estimates of house value. Journal of Housing Economics 2 (1992) 339-357
12. Goodman J.L., and Nichols J.B. Does FHA increase home ownership or just accelerate it?. Journal of Housing Economics 6 (1997) 184-202
13. Goolsbee A. Investment tax incentives, prices, and the supply of capital. Quarterly Journal of Economics 113 (1998) 121-148
14. Gyourko J., Linneman P., and Wachter S. Analyzing the relationship among race, wealth and home ownership in America. Journal of Housing Economics 8 (1999) 63-89
15. Haurin D.R., Hendershott P.H., and Wachter S.M. Borrowing constraints and the tenure choice of American youth. Journal of Housing Research 8 (1997) 135-152
16. Hayashi F. The effect of liquidity constraints on consumption: a cross-section analysis. Quarterly Journal of Economics (1985) 183-206
17. Henderson J.V., and Ionnides Y.M. A model of housing tenure choice. American Economic Review 73 (1983) 98-113
18. Hilber, C., C. Mayer, 2004. "Why Do Households Without Children Support Local Public Schools? Linking House Price Capitalization to School Spending." LSE/Columbia University Working Paper.
19. Hurst E., and Lusardi A. Liquidity constraints, household wealth, and entrepreneurship. Journal of Political Economy 112 (2004) 319-347
20. Jackson K.T. Crabgrass Frontier: The Suburbanization of the United States (1985), Oxford University Press, Oxford
21. Linneman P., and Watcher S. The impacts of borrowing constraints on homeownership. AREUEA Journal 17 (1989) 389-402
22. Linneman P., Megbolugbe I.F., Wachter S.M., and Cho M. Do borrowing constraints change U.S. homeownership rates?. Journal of Housing Economics 6 (1997) 318-333
23. Listokin D., Wyly E.K., Schmitt B., and Voicu I. The potential and limitations of mortgage innovation in fostering homeownership in the United States. Housing Policy Debate 12 (2001) 465-513
24. Malpezzi S., and Mayo S. Getting housing incentives right: a case study of the effects of regulation, taxes and subsidies on housing supply in Malaysia. Land Economics 73 (1997) 372-391
25. Mankiw N.G., and Weil D.N. The baby boom, the baby bust, and the housing market. Regional Science and Urban Economics 19 (1989) 235-258
26. Martinez S.C. The housing act of 1949: its place in the realization of the American dream of homeownership. Housing Policy Debate 11 (2000) 467-487
27. Masnick G.S. Home ownership trends and racial inequality in the United States in the 20th century. Joint Center for Housing Studies of Harvard University, Working Paper #W01-4 (2001)
28. Monroe A. How the federal housing administration affects homeownership. Joint Center for Housing Studies Working Paper W02-4 (2001)
29. Ortalo-Magne, F., Rady, S., 2002. "Housing Market Dynamics: On the Contribution of Income Shocks and Credit Constraints" Unpublished manuscript.
30. Poterba J.M. Tax subsidies to owner-occupied housing: an asset-market approach. Quarterly Journal of Economics 99 (1984) 729-752
31. Ranney S.I. The future price of houses, mortgage market conditions and the returns to homeownership. American Economic Review 71 (1981) 323-333
32. Rosenthal S.S. Eliminating credit barriers to increase homeownership: how far can we go?. In: Retsinas N.P., and Belsky E.S. (Eds). Low-Income Homeownership (2002), Brookings Institution, Washington, D.C. 111-145
33. Schwab R.M. Inflation expectations and the demand for housing. American Economic Review 72 (1982) 143-153
34. Smith L.B., Rosen K.T., and Fallis G. Recent developments in economic models of housing markets. Journal of Economic Literature 26 (1988) 29-64
35. Stein J. Prices and trading volume in the housing market: a model with down-payment effects. Quarterly Journal of Economics 110 (1995) 379-406
36. Stephens M. Paycheck receipt and the timing of consumption. National Bureau of Economic Research Working Paper #9356 (2002)
37. Stiglitz J., and Weiss A. Credit rationing in markets with imperfect information. American Economic Review 71 (1981) 393-410
38. Topel R., and Rosen S. Housing investment in the United States. Journal of Political Economy 96 (1988) 718-740
39. Vigdor J.L. Liquidity constraints and housing prices: theory and evidence from the VA mortgage program. National Bureau of Economic Research Working Paper #10611 (2004)
40. Zorn P. Mobility-tenure decisions and financial credit: do mortgage qualification requirements constraint home ownership?. AREUEA Journal 17 (1989) 1-16