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

Gary V. Engelhardt

doi:10.1016/S0094-1190(02)00511-9

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

Gary V. Engelhardt

Research output: Contribution to journal › Review article › peer-review

154 Scopus citations

Abstract

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 language	English (US)
Pages (from-to)	171-195
Number of pages	25
Journal	Journal of Urban Economics
Volume	53
Issue number	1
DOIs	https://doi.org/10.1016/S0094-1190(02)00511-9
State	Published - Jan 2003

Keywords

Housing equity
Loss aversion
Mobility

ASJC Scopus subject areas

Economics and Econometrics
Urban Studies

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10.1016/S0094-1190(02)00511-9

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

abstract = "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.",

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N2 - 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.

AB - 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.

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KW - Loss aversion

KW - Mobility

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

Abstract

Keywords

ASJC Scopus subject areas

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