Nominal loss aversion, housing equity constraints, and household mobility: Evidence from the United States

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This paper exploits the recent variation in US house prices to examine the effect of equity constraints and nominal loss aversion on household mobility. Detailed data from the 1985-1996 National Longitudinal Survey of Youth (NLSY79) were matched with house price data from 149 metropolitan areas to estimate instrumental variables linear probability and semi-parametric proportional hazard models of intra-metropolitan mobility. Household mobility is significantly influenced by nominal loss aversion. There is little evidence that low equity because of fallen house prices constrains mobility.

Original languageEnglish (US)
Pages (from-to)171-195
Number of pages25
JournalJournal of Urban Economics
Issue number1
StatePublished - Jan 2003



  • Housing equity
  • Loss aversion
  • Mobility

ASJC Scopus subject areas

  • Economics and Econometrics

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