Journal article
Precaution and liquidity in the demand for housing
Abstract
We exploit cross‐sectional mortgage data to investigate the importance of liquidity constraints and a precautionary motive in the demand for housing. Households that are not liquidity constrained consume housing services essentially as the life cycle hypothesis suggests but with a significant precautionary component. Households that are liquidity constrained, in terms of not meeting standard loan‐to‐value or payments‐to‐income constraints, are …
Authors
Balvers R; Szerb L
Journal
Economic Inquiry, Vol. 38, No. 2, pp. 289–303
Publisher
Wiley
Publication Date
April 2000
DOI
10.1111/j.1465-7295.2000.tb00018.x
ISSN
0095-2583