Are Housing Prices, Household Debt, and Growth Sustainable?

Levy Economics Institute, Strategic Analysis Series, January 2006

12 Pages Posted: 9 May 2011

See all articles by Dimitri B. Papadimitriou

Dimitri B. Papadimitriou

Bard College - Levy Economics Institute

Edward Chilcote

affiliation not provided to SSRN

Gennaro Zezza

University of Cassino - Department of Economics; Bard College - The Levy Economics Institute

Date Written: January 2006

Abstract

Rising home prices and low interest rates have fueled the recent surge in mortgage borrowing and enabled consumers to spend at high rates relative to their income. Low interest rates have outerbalanced.

The growth in debt and acted to dampen the growth in household debt-service burdens. As past Levy Institute strategic analyses have pointed out, these trends are not sustainable: household spending relative to income cannot grow indefinitely.

Suggested Citation

Papadimitriou, Dimitri B. and Chilcote, Edward and Zezza, Gennaro, Are Housing Prices, Household Debt, and Growth Sustainable? (January 2006). Levy Economics Institute, Strategic Analysis Series, January 2006, Available at SSRN: https://ssrn.com/abstract=1833609 or http://dx.doi.org/10.2139/ssrn.1833609

Dimitri B. Papadimitriou (Contact Author)

Bard College - Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504
United States
845-758 7711 (Phone)
845-758 9424 (Fax)

Edward Chilcote

affiliation not provided to SSRN ( email )

Gennaro Zezza

University of Cassino - Department of Economics ( email )

Cassino
Italy

HOME PAGE: http://gennaro.zezza.it

Bard College - The Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504-5000
United States

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