Sources and Uses of Equity Extracted from Homes
Posted: 2 Jul 2008
Date Written: spring 2008
Abstract
In this paper, we present estimates of the disposition of the free cash generated by home equity extraction to finance consumer spending, outlays for home improvements, debt repayment, acquisition of assets, and other uses. We estimate free cash as cash available net of closing costs and repayment of other mortgage debt. We have also extended the quarterly data series for gross equity extraction, presented in our earlier paper (Greenspan and Kennedy, 2005), back to 1968.
Keywords: Mortgage equity withdrawal, wealth effect, consumer spending, savings rate
JEL Classification: E21, G21
Suggested Citation: Suggested Citation
Greenspan, Alan and Kennedy, James E., Sources and Uses of Equity Extracted from Homes (spring 2008). Oxford Review of Economic Policy, Vol. 24, Issue 1, pp. 120-144, 2008, Available at SSRN: https://ssrn.com/abstract=1154417 or http://dx.doi.org/grn003
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