How Credit Affects Revealed Risk Preferences
|
|
- Philippa Eaton
- 8 years ago
- Views:
Transcription
1 Evidence from Home Equity Loans and Voluntary Unemployment Insurance Kristoffer Markwardt Alessandro Martinello László Sándor + SFI and University of Copenhagen + Harvard University
2 Liquidity and risk - empirical evidence What you know already Dah! Risk exposure Risk aversion = Savings Liquidity Life cycle buffers (Carroll, 1997; 2001), committments (Chetty and Szeidl, 2007), constraints (Deaton, 1991; Alessie et al., 1997) But also, wealth used as buffer stock Home equity loans (Hurst & Stafford, 2004) Intuition: Buffer pool = Risk I can take Trading liquidity with risk? Risk Liquidity? What we want to convince you of Yes: people who has more access to liquidity causally take more risk than others: Risk = Liquidity
3 Liquidity and risk - empirical evidence What you know already Dah! Risk exposure Risk aversion = Savings Liquidity Life cycle buffers (Carroll, 1997; 2001), committments (Chetty and Szeidl, 2007), constraints (Deaton, 1991; Alessie et al., 1997) But also, wealth used as buffer stock Home equity loans (Hurst & Stafford, 2004) Intuition: Buffer pool = Risk I can take Trading liquidity with risk? Risk Liquidity? What we want to convince you of Yes: people who has more access to liquidity causally take more risk than others: Risk = Liquidity
4 Liquidity and risk - empirical evidence What you know already Dah! Risk exposure Risk aversion = Savings Liquidity Life cycle buffers (Carroll, 1997; 2001), committments (Chetty and Szeidl, 2007), constraints (Deaton, 1991; Alessie et al., 1997) But also, wealth used as buffer stock Home equity loans (Hurst & Stafford, 2004) Intuition: Buffer pool = Risk I can take Trading liquidity with risk? Risk Liquidity? What we want to convince you of Yes: people who has more access to liquidity causally take more risk than others: Risk = Liquidity
5 Why us Do we care? Relevant for optimal UI design, commitments, role of home equity Micro effects of credit expansions (pre-) and crunches (post-crisis)!problems... 1 Measure preferences for risk 2 Causality ( =): Liquidity endogenous Hard to separate wealth and liquidity shocks (Chetty and Szeidl 2012)... solved: the case of Denmark! 1 UI voluntary and uniform: demand for UI revealed risk preferences 2 Mortgage reform of March 1992 (Leth-Petersen, 2010) Exogenous shock, only for housing equity holders Affected only access to credit (liquidity), not wealth
6 Why us Do we care? Relevant for optimal UI design, commitments, role of home equity Micro effects of credit expansions (pre-) and crunches (post-crisis)!problems... 1 Measure preferences for risk 2 Causality ( =): Liquidity endogenous Hard to separate wealth and liquidity shocks (Chetty and Szeidl 2012)... solved: the case of Denmark! 1 UI voluntary and uniform: demand for UI revealed risk preferences 2 Mortgage reform of March 1992 (Leth-Petersen, 2010) Exogenous shock, only for housing equity holders Affected only access to credit (liquidity), not wealth
7 Why us Do we care? Relevant for optimal UI design, commitments, role of home equity Micro effects of credit expansions (pre-) and crunches (post-crisis)!problems... 1 Measure preferences for risk 2 Causality ( =): Liquidity endogenous Hard to separate wealth and liquidity shocks (Chetty and Szeidl 2012)... solved: the case of Denmark! 1 UI voluntary and uniform: demand for UI revealed risk preferences 2 Mortgage reform of March 1992 (Leth-Petersen, 2010) Exogenous shock, only for housing equity holders Affected only access to credit (liquidity), not wealth
8 Preview: percentage of insured over time Home equity in 1991 Equity: N1= 35710; No Equity: N0= No equity in home
9 The credit market reform Took effect on May 21, 1992; unexpected (Leth-Petersen, AER 2010) Main elements: Expansion of maximum maturity of a real estate loan (from 20) to 30 years Right to remortgage loan Allows to use house as collateral for consumption loans Before 1992: loan only for house purchase 60% of house value from May 1992, 80% from December 1992 Loan against equity = unexpected liquidity shock Only to households with housing equity
10 The credit market reform Took effect on May 21, 1992; unexpected (Leth-Petersen, AER 2010) Main elements: Expansion of maximum maturity of a real estate loan (from 20) to 30 years Right to remortgage loan Allows to use house as collateral for consumption loans Before 1992: loan only for house purchase 60% of house value from May 1992, 80% from December 1992 Loan against equity = unexpected liquidity shock Only to households with housing equity
11 Unemployment insurance in DK Voluntary! Uniform insurance product Cost, requirements and benefits stable over time Centrally regulated stable across funds Small differences in administrative costs and services (e.g. job search) Convenient Benefit cap $1,800 per month Actuarially fair given 2.6% u.r. = High insured % Social security (fallback option) not considered here... almost!
12 Economic environment GDP growth Interest rate Unemployment rate House price index
13 Data - Danish registers 100% Danish population (wealth tax) Primarily tax reports Info on income, wealth, insurance status, demographics, SES... Selection criteria Individuals left All individuals in cohorts Trim financial outliers Balance sample Drop ever out of labor force Drop ever self-employed Drop ever in education Industry-related selection Homeowner in Trim top & bottom 1% of liquidity shock
14 Key variables Liquidity shock L 1991 = 0.8 H1991 M1991 Y P Housing Publicly assessed value, December 31 Loans granted on basis of market price scale by public/market ratio, from housing transactions Mortgage Market value, December 31 Bond price fluctuations = measurement error; noise Only consistently reported 1992 Permanent income Comprise 22 years of wage income ( 87-08) Individuals on different parts of earnings path include as many years as possible
15 Key variables Liquidity shock L 1991 = 0.8 H1991 M1991 Y P Housing Publicly assessed value, December 31 Loans granted on basis of market price scale by public/market ratio, from housing transactions Mortgage Market value, December 31 Bond price fluctuations = measurement error; noise Only consistently reported 1992 Permanent income Comprise 22 years of wage income ( 87-08) Individuals on different parts of earnings path include as many years as possible
16 Descriptives: Home owners in 1991 by size of liquidity shock Q1 Q2 Q3 Q4 Population Liquidity shock Insurance rate Insurance rate Insurance rate Moved to 1991 housing Housing value Mortgage value Permanent income Disposable income Liquid Assets Debts Employment rate Unemployment risk Industry, fewest Mining Fishing Industry, most Metal industry Age Years of schooling Spouse # kids Female N
17 Descriptives: Home owners in 1991 by size of liquidity shock Q1 Q2 Q3 Q4 Population Liquidity shock Insurance rate Insurance rate Insurance rate Moved to 1991 housing Housing value Mortgage value Permanent income Disposable income Liquid Assets Debts Employment rate Unemployment risk Industry, fewest Mining Fishing Industry, most Metal industry Age Years of schooling Spouse # kids Female N
18 Descriptives: Home owners in 1991 by size of liquidity shock Q1 Q2 Q3 Q4 Population Liquidity shock Insurance rate Insurance rate Insurance rate Moved to 1991 housing Housing value Mortgage value Permanent income Disposable income Liquid Assets Debts Employment rate Unemployment risk Industry, fewest Mining Fishing Industry, most Metal industry Age Years of schooling Spouse # kids Female N
19 Discrete treatment Unconditional Conditional Home equity in 1991 No equity in home Home equity in 1991 No equity in home Equity: N1= 35710; No Equity: N0= Equity: N1= 35710; No Equity: N0= 78116
20 Continuous treatment.5.3 %insured in liquidity shock
21 Continuous treatment.5.7 %insured in liquidity shock
22 Continuous treatment.3.1 %insured in liquidity shock
23 Continuous treatment %insured in liquidity shock
24 Continuous treatment %insured in liquidity shock
25 Continuous treatment %insured in liquidity shock
26 Continuous treatment %insured in liquidity shock
27 Continuous treatment %insured in liquidity shock
28 Continuous treatment.9.7 %insured in liquidity shock
29 CONTINUOUS OLS MARG FE LOGIT FE LOGIT 1991 equity 0.959** 4.457** 0.122** (0.117) (0.737) ( ) 1991 equity, post ** ** ** * (0.0871) (0.627) (0.0864) (0.0110) (0.0197) 1991 liquid assets ** (0.239) (0.916) ( ) Permanent income ** ** ** (0.0120) (0.0350) ( ) 1991 debts ** ** ** (0.185) (0.882) ( ) Disposable income ** ** ** 0.961** (0.464) (1.993) (0.271) (0.0166) (0.0520) Unemployment risk 0.896** ** 0.108** ** (0.0253) (0.125) (0.0185) ( ) ( ) N. kids 0.358** ** ** 0.101** (0.0736) (0.421) (0.0603) ( ) (0.0146) Female 1.361** 6.246** 0.144** (0.197) (0.872) ( ) Couple 1.090** 4.048** 0.670** 0.139** 0.243** (0.132) (0.760) (0.105) ( ) (0.0252) Year Yes Yes Yes Yes Yes Cohort Yes Yes No Yes No Industry Yes Yes Yes Yes Yes Education Yes Yes No Yes No Observations
30 DISCRETE OLS MARG FE LOGIT FE LOGIT Treated group 0.794** 2.696** ** (0.166) (1.029) (0.0101) Treatment ** ** (0.123) (0.844) (0.122) (0.0161) (0.0300) 1991 liquid assets ** (0.241) (0.928) ( ) Permanent income ** ** ** (0.0124) (0.0361) ( ) 1991 debts ** ** ** (0.186) (0.902) ( ) Disposable income ** ** ** 0.959** (0.461) (2.058) (0.279) (0.0172) (0.0535) Unemployment risk 0.912** ** 0.109** ** (0.0262) (0.129) (0.0191) ( ) ( ) N. kids 0.395** ** ** 0.111** (0.0761) (0.436) (0.0624) ( ) (0.0151) Female 1.318** 6.247** 0.136** (0.204) (0.903) ( ) Couple 1.038** 4.203** 0.668** 0.130** 0.238** (0.136) (0.788) (0.108) ( ) (0.0259) Year Yes Yes Yes Yes Yes Cohort Yes Yes No Yes No Industry Yes Yes Yes Yes Yes Education Yes Yes No Yes No Observations
31 Robustness check: Stable households OLS MARG FE LOGIT FE LOGIT Continuous ** ** ** (0.0953) (0.674) (0.0873) (0.0122) (0.0254) Discrete ** ** (0.135) (0.909) (0.124) (0.0179) (0.0387) Year Yes Yes Yes Yes Yes Cohort Yes Yes No Yes No Industry Yes Yes Yes Yes Yes Education Yes Yes No Yes No Other controls a Yes Yes Yes Yes Yes Observations, cont Observations, disc Standard errors in parentheses; * p<0.05, ** p<0.01 a Other controls include liquid assets and debts in 1991, permanent income, disposable income, unemployment risk, gender, # kids and a couple indicator.
32 Placebo reforms.3.1 %insured in Hypothetical liquidity shock
33 Placebo reforms.7.9 %insured in Hypothetical liquidity shock
34 Placebo reforms.2 0 %insured in Hypothetical liquidity shock
35 Placebo reforms %insured in Hypothetical liquidity shock
36 Placebo reforms Placebo reform in 1991 Real reform in %insured in %insured in Hypothetical liquidity shock liquidity shock
37 Conclusions Sum up Small but significant effect of access to credit on demand for UI Transaction costs (US), cost-effectiveness of program, gross effect Robust to specifications, placebos, common trend checks Contributions Empirical evidence on effects of liquidity, undocumented Disentangle wealth from liquidity effect House price variation (Chetty & Szeidl, 2012; Hryshko et al.) confound the two
38 Conclusions Sum up Small but significant effect of access to credit on demand for UI Transaction costs (US), cost-effectiveness of program, gross effect Robust to specifications, placebos, common trend checks Contributions Empirical evidence on effects of liquidity, undocumented Disentangle wealth from liquidity effect House price variation (Chetty & Szeidl, 2012; Hryshko et al.) confound the two
Alessandro Martinello. November 29, 2014
DOES LIQUIDITY SUBSTITUTE FOR UNEMPLOYMENT INSURANCE? EVIDENCE FROM THE INTRODUCTION OF HOME EQUITY LOANS IN DENMARK Kristoffer Markwardt SFI - The Danish National Centre for Social Research Alessandro
More informationThe Effect of Housing on Portfolio Choice. July 2009
The Effect of Housing on Portfolio Choice Raj Chetty Harvard Univ. Adam Szeidl UC-Berkeley July 2009 Introduction How does homeownership affect financial portfolios? Linkages between housing and financial
More informationDo First Time House Buyers Receive Financial Transfers from Their Parents?
Do First Time House Buyers Receive Financial Transfers from Their Parents? Christophe Kolodziejczyk and Søren Leth-Petersen,* Version 27.01.12 Abstract Previous papers have suggested that financial transfers
More informationConsumption and Savings of First Time House Owners
Consumption and Savings of First Time House Owners João Ejarque University of Essex Department of Economics Wivenhoe Park, Colchester, Essex, CO4 3SQ, United Kingdom Email: jejarque@essex.ac.uk Søren Leth-Petersen
More informationHousing boom and burst as seen from the Spanish Survey of Household Finances
Housing boom and burst as seen from the Spanish Survey of Household Finances Olympia Bover Prepared for the 2nd Conference on Real Estate Market, Bank of Greece, Athina, December 2011 PLAN FOR THIS TALK
More informationHOUSEHOLD DEBT AND CONSUMPTION DURING THE FINANCIAL CRISIS
HOUSEHOLD DEBT AND CONSUMPTION DURING THE FINANCIAL CRISIS Asger Lau Andersen, Economics, Charlotte Duus and Thais Lærkholm Jensen, Financial Markets INTRODUCTION AND SUMMARY Danish households gross debt
More informationHousehold Debt in the U.S.: 2000 to 2011
Household Debt in the U.S.: 2000 to 2011 By Marina Vornovytskyy, Alfred Gottschalck, and Adam Smith Debt is an important financial tool used by U.S. households to finance their purchases. Households often
More informationLiquidity Constraints in the U.S. Housing Market
Liquidity Constraints in the U.S. Housing Market Denis Gorea Virgiliu Midrigan May 215 Contents A Income Process 2 B Moments 4 C Mortgage duration 5 D Cash-out refinancing 5 E Housing turnover 6 F House
More informationThis PDF is a selection from a published volume from the National Bureau of Economic Research
This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: Fiscal Policy and Management in East Asia, NBER-EASE, Volume 16 Volume Author/Editor: Takatoshi
More informationHousing Collateral, Credit Constraints and Entrepreneurship - Evidence from a Mortgage Reform
Housing Collateral, Credit Constraints and Entrepreneurship - Evidence from a Mortgage Reform Thais Laerkholm Jensen, University of Copenhagen Søren Leth-Petersen, University of Copenhagen Ramana Nanda,
More information4 Distribution of Income, Earnings and Wealth
4 Distribution of Income, Earnings and Wealth Indicator 4.1 Indicator 4.2a Indicator 4.2b Indicator 4.3a Indicator 4.3b Indicator 4.4 Indicator 4.5a Indicator 4.5b Indicator 4.6 Indicator 4.7 Income per
More informationMonetary policy strategy: Old issues and new challenges
Monetary policy strategy: Old issues and new challenges Joint Deutsche Bundesbank/Federal Reserve Bank of Cleveland Conference Frankfurt am Main, 6-7 June 2007 Fiorella de Fiore European Central Bank Discussion
More informationCollege of Business Administration Savannah State University Personal Finance (BUSA 3000) Quiz 1 Fall 2011 Dr. William A. Dowling.
College of Business Administration Savannah State University Personal Finance (BUSA 3000) Quiz 1 Fall 2011 Dr. William A. Dowling Exam Key Instructions: You are to answer each of the following. If the
More informationPrivate Forms of Unemployment Protection and Social Stratification. Alison Koslowski University of Edinburgh, UK
Private Forms of Unemployment Protection and Social Stratification in England and Scotland Alison Koslowski University of Edinburgh, UK Welfare Markets and Personal Risk Management in England and Scotland
More informationHousehold debt and consumption in the UK. Evidence from UK microdata. 10 March 2015
Household debt and consumption in the UK Evidence from UK microdata 10 March 2015 Disclaimer This presentation does not necessarily represent the views of the Bank of England or members of the Monetary
More informationThe Eurosystem Household Finance and Consumption Survey. Statistical Tables APRIL 2013
The Eurosystem Household Finance and Consumption Survey Statistical Tables APRIL This set of tables has been prepared by the members of the Eurosystem Household Finance and Consumption Network. You can
More informationComposition of Farm Household Income and Wealth
Composition of Farm Household Income and Wealth Today it is rare for any household to receive all of its from a single source. Even when only one household member is employed, it is possible to earn from
More informationFinancial Hardship Application Real Estate Loans (PLEASE KEEP A COPY FOR YOUR RECORDS)
Financial Hardship Application Real Estate Loans (PLEASE KEEP A COPY FOR YOUR RECORDS) Required Documentation Completed PenFed Financial Hardship Application and PenFed Financial Statement Income Verification
More informationDOES LIFE INSURANCE PROMOTE ENTREPRENEURSHIP? Lisa L. Verdon Department of Economics College of Wooster (330) 263-2216 lverdon@wooster.
DOES LIFE INSURANCE PROMOTE ENTREPRENEURSHIP? Lisa L. Verdon Department of Economics College of Wooster (330) 263-2216 lverdon@wooster.edu March 8, 2010 Abstract Entrepreneurs are often considered the
More informationConsumer Revolving Credit and Debt over the Life Cycle and Business Cycle
Consumer Revolving Credit and Debt over the Life Cycle and Business Cycle Scott L. Fulford and Scott Schuh Abstract: Little work has examined how unsecured consumer credit, such as the limit on credit
More informationUncertainty and Insurance
Uncertainty and Insurance A risk averse consumer is willing to pay for insurance. If consumption levels are 100, 200 and 400, with probabilities 1/6, 1/2, 1/3, respectively, then expected value of cons.
More informationLife Insurance Demand and Financial Inclusion Evidence from Italian households
Life Insurance Demand and Financial Inclusion Evidence from Italian households Elisa Luciano* Joint work with Mariacristina Rossi *University of Turin, CeRP-CCA and Netspar Summer School on Gender, Economics
More informationA systemic approach to home loans: Continuous workouts vs. fixed rate contracts (Shiller et al., 2014)
A systemic approach to home loans: Continuous workouts vs. fixed rate contracts (Shiller et al., 2014) Discussion Cristian Badarinza EFA Meeting, Lugano, August 2014 Summary 1. Unexpected house price declines
More informationConstruction of variables from CE
Online Appendix for Has Consumption Inequality Mirrored Income Inequality? by Mark Aguiar and Mark Bils In this appendix we describe construction of the variables in our data set and the impact of sample
More informationChapter 18 Working Capital Management
Chapter 18 Working Capital Management Slide Contents Learning Objectives Principles Used in This Chapter 1. Working Capital Management and the Risk-Return Tradeoff 2. Working Capital Policy 3. Operating
More informationDemographic Trends, Housing Equity, and the Financial Security of Future Retirees
Demographic Trends, Housing Equity, and the Financial Security of Future Retirees James Poterba, Steven Venti and David A. Wise by December, 27 This research was supported by the U.S. Social Security Administration
More informationCollateralization, Bank Loan Rates and Monitoring
Collateralization, Bank Loan Rates and Monitoring Geraldo Cerqueiro Universidade ecatólica a Portuguesa Steven Ongena University of Zurich, SFI and CEPR Kasper Roszbach Sveriges Riksbank and University
More informationAccounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.
A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe
More informationActive vs. Passive Decisions and Crowd-out in Retirement Savings Accounts: Evidence from Denmark Faculty Research Working Paper Series
Active vs. Passive Decisions and Crowd-out in Retirement Savings Accounts: Evidence from Denmark Faculty Research Working Paper Series Raj Chetty Harvard University and NBER John N. Friedman Harvard Kennedy
More information9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle
9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no
More informationInvestment Policy Questionnaire
Investment Policy Questionnaire Name: Date: Ferguson Investment Services, PLLC Investment Policy Questionnaire Introduction: The information you provide on this questionnaire will remain confidential.
More informationBorrowing During Unemployment: Unsecured Debt as a Safety Net
Sullivan 1 Borrowing During Unemployment: Unsecured Debt as a Safety Net James X. Sullivan Abstract: This paper examines whether unsecured credit markets help disadvantaged households supplement temporary
More informationHousehold debt and spending in the United Kingdom
Household debt and spending in the United Kingdom Phil Bunn and May Rostom Bank of England Norges Bank Workshop: 24 March 2015 1 Outline Motivation Literature/theory Data/methodology Econometric results
More informationEnglish Summary. Chapter I: Economic outlook. Denmark USA Euro area
English Summary The report contains three chapters: Chapter I gives an economic outlook for the Danish economy, Chapter II contains a long term projection for the Danish economy focusing on the development
More informationCredit Card Use After the Final Mortgage Payment: Does the Magnitude of Income Shocks Matter? Barry Scholnick University of Alberta
Credit Card Use After the Final Mortgage Payment: Does the Magnitude of Income Shocks Matter? Barry Scholnick University of Alberta Permanent Income Hypothesis (Milton Friedman etc.) Consumption Smoothing
More informationThe Value of a Home. RCIO Monthly Market Advisor
The following information and opinions are provided courtesy of Wells Fargo Bank N.A RCIO Monthly Market Advisor The Value of a Home JULY 16, 2015 Regional Chief Investment Officers Sean McCarthy, CFA,
More informationWORKING P A P E R. Unequal Giving. Monetary Gifts to Children Across Countries and Over Time JULIE ZISSIMOPOULOS JAMES P. SMITH WR-723.
WORKING P A P E R Unequal Giving Monetary Gifts to Children Across Countries and Over Time JULIE ZISSIMOPOULOS JAMES P. SMITH WR-723 December 2009 This paper series made possible by the NIA funded RAND
More informationHOUSEHOLD CONSUMPTION AND HOUSEHOLD TYPE: WHAT CAN WE LEARN FROM MORTGAGE REFINANCING?
HOUSEHOLD CONSUMPTION AND HOUSEHOLD TYPE: WHAT CAN WE LEARN FROM MORTGAGE REFINANCING? Erik Hurst University of Chicago Graduate School of Business May 1999 1 2 HOUSEHOLD CONSUMPTION AND HOUSEHOLD TYPE:
More informationLife Insurance Demand. Evidence from Italian households with a gender twist
Life Insurance Demand. Evidence from Italian households with a gender twist Elisa Luciano Federico Petri Mariacristina Rossi University of Turin and CeRP-CCA CINTIA International Conference, Turin, Italy
More informationBANK LENDING SURVEY FOR THE EURO AREA QUESTIONNAIRE
BANK LENDING SURVEY FOR THE EURO AREA QUESTIONNAIRE I. Loans or credit lines to 1. Over the past three months, how have your bank s credit standards as applied to the approval of loans or credit lines
More informationHOUSING FINANCE IN TRANSITION ECONOMIES
HOUSING FINANCE IN TRANSITION ECONOMIES OECD Workshop Warsaw, Poland December 5-6, 5 2002 Loïc Chiquier The World Bank 1 Challenge in Transition Economies! Key for growth, poverty, wealth (75 wealth),
More information2005 National LTCi Producer Summit
2005 National LTCi Producer Summit As Reverse Mortgage Popularity Soars, How Can You Tap the Growing Market? Adrian Prieto, Key Account Manager Financial Freedom Senior Funding Corp. Financial Freedom
More informationConsumer Borrowing Behavior of Non-Hispanic White Homeowners
CONSUMER BORROWING BEHAVIOR OF U.S. HOMEOWNERS: A STUDY BY RACE DISSERTATION Presented in Partial Fulfillment of the Requirements for thedegreedoctorofphilosophy in the Graduate School of The Ohio State
More information13. SAVINGS RATE: WHY IS IT DECLINING?
13. SAVINGS RATE: WHY IS IT DECLINING? Rama V. Ramachandran Summary. The savings rate declined in the United States dramatically from 7.3 percent in 1988 to 4.3% in 1998 and then to 0.4% in 2007. Such
More informationDefining Housing Equity Withdrawal
Housing Reserve Equity Bank of Australia Bulletin February 23 Housing Equity The increase in housing prices in recent years has contributed to rising household wealth and has helped to underpin continued
More informationBUSINESS LOAN APPLICATION
BUSINESS LOAN APPLICATION Company Name: Company Information Real Estate Holding Company (if any): Street City State Zip Business Telephone Primary Contact E-Mail Business Facsimile Type of Business Corporation
More informationWorkshop 6 The Building Blocks of Macroeconomics
Workshop 6 The Building Blocks of Macroeconomics Description Macroeconomics is the study of the behavior of the economy as a whole and the whole often behaves differently than the individual parts. This
More informationBorrowing During Unemployment: Unsecured Debt as a Safety Net
Borrowing During Unemployment: Unsecured Debt as a Safety Net James X. Sullivan Northwestern University May 2002 Abstract This paper explores two related questions: Does unsecured debt help households
More informationDEPARTMENT OF COMMERCE REVOLVING LOAN FUND (RLF) SUMMARY
DEPARTMENT OF COMMERCE REVOLVING LOAN FUND (RLF) SUMMARY The Revolving Loan Fund (RLF) program is designated to make direct business loans with other financing sources (public sector loans, governmental
More informationFOLLOW STEPS 1 6 TO COMPLETE the Sandy B. Muller Breast Cancer Foundation Application
Application Directions and Checklist Please Read Carefully Please be sure to provide all the information requested here. An incomplete application will delay our ability to provide you with assistance.
More informationHome is Where the Equity Is: Mortgage Refinancing and Household Consumption
Home is Where the Equity Is: Mortgage Refinancing and Household Consumption Erik Hurst Graduate School of Business University of Chicago Chicago, Illinois 60637 and Frank Stafford Department of Economics
More informationLIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS
APRIL 2014 LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS Most economists talk about where the economy is headed it s what they do. Paying attention to economic indicators can give you an idea of
More informationReverse Mortgages A Source of Funds for Retirement?
Reverse Mortgages A Source of Funds for Retirement? Many people make it a goal of their financial lives to invest in a home. It is a great accomplishment when that last mortgage payment is made. Can a
More informationSubmission to the Financial System Inquiry. August 2014. Homesafe Solutions Pty Ltd
Submission to the Financial System Inquiry August 2014 Homesafe Solutions Pty Ltd Executive Summary Homesafe Solutions Pty Ltd welcomes the inclusion of access to equity in the home in the Interim Report
More informationDiscussion of Financially Fragile Households: Evidence and Implications Paper by Lusardi, Schneider and Tufano
1 Discussion of Financially Fragile Households: Evidence and Implications Paper by Lusardi, Schneider and Tufano Adair Morse Expense shocks happen. Lusardi, Schneider and Tufano study the ability of individuals
More informationHOW MUCH SHOULD PEOPLE SAVE?
July 2014, Number 14-11 RETIREMENT RESEARCH HOW MUCH SHOULD PEOPLE SAVE? By Alicia H. Munnell, Anthony Webb, and Wenliang Hou* Introduction The National Retirement Risk Index (NRRI) shows that half of
More informationICI ReseaRCh Perspective
ICI ReseaRCh Perspective 1401 H Street, NW, Suite 1200 WashINgton, DC 20005 202/326-5800 www.ici.org march 2011 vol. 17, no. 3 WHAT S INSIDE 2 Introduction 5 Employee Demand for Pension Benefits 14 Why
More informationApplicant Information
Page 1 of 12 Applicant Information Parent or Guardian Information Prefix First Last test test Middle Suffix Mailing Address 1726 W 25th St City State Zip Los Angeles CA 90018 County of Residence Country
More informationExpectations and Saving Behavior: An Empirical Analysis
Ifo Institute Leibniz Institute for Economic Research at the University of Munich Expectations and Saving Behavior: An Empirical Analysis Stefan Arent Ifo Working Paper No. 128 March 2012 An electronic
More informationGETTING THE MOST OUT OF YOUR ESOP
GETTING THE MOST OUT OF YOUR ESOP Michael G. Keeley Hunton & Williams LLP 1445 Ross Avenue Suite 3700 Dallas, Texas 75202 (214) 468-3345 mkeeley@hunton.com Traditional Sources of Capital for Community
More informationCouples Dual Questionnaire
Investor Profile Questionnaire Your responses will help us recommend a custom investment program tailored to your needs. Clients names How did you hear about us? Are you: Married Single Please complete
More information1 Regional Bank Regional banks specialize in consumer and commercial products within one region of a country, such as a state or within a group of states. A regional bank is smaller than a bank that operates
More informationFinancial Planning White Paper. Trust Deed Investing. An Alternative Approach for Today s Complex Investing Environment
Financial Planning White Paper Trust Deed Investing An Alternative Approach for Today s Complex Investing Environment Table of Contents Introduction...... 3 The Time is Now for Alternative Investing......
More informationMACROECONOMIC AND INDUSTRY ANALYSIS VALUATION PROCESS
MACROECONOMIC AND INDUSTRY ANALYSIS VALUATION PROCESS BUSINESS ANALYSIS INTRODUCTION To determine a proper price for a firm s stock, security analyst must forecast the dividend & earnings that can be expected
More informationHow To Answer A Survey On Finance In European Business
European Commission and European Central Bank Survey on the access to finance of SMEs, October 2013 to March 2014 Hello, my name is [interviewer] and I am calling from [NON-UK: Ipsos / UK: Ipsos MORI]
More informationPrudential definition of assets: micro and macro prudential perspective
Prudential definition of assets: micro and macro prudential perspective Santiago de Chile November 2015 Presented by Salome Skhirtladze Authors: Giorgi Kadagidze, Otar Nadaraia, Salome Skhirtladze, Vakhtang
More informationFinancial Stability Report 2015/2016
Financial Stability Report 2015/2016 Press Conference Presentation Miroslav Singer Governor Prague, 14 June 2016 Structure of presentation I. Overall assessment of risks and setting of countercyclical
More informationContents... 2. Executive Summary... 5. Key Findings... 5. Use of Credit... 5. Debt and savings... 6. Financial difficulty... 7. Background...
CREDIT, DEBT AND FINANCIAL DIFFICULTY IN BRITAIN, A report using data from the YouGov DebtTrack survey JUNE 2013 Contents Contents... 2 Executive Summary... 5 Key Findings... 5 Use of Credit... 5 Debt
More informationReforms of bankruptcy laws. The case of Germany *
Reforms of bankruptcy laws. The case of Germany * Hermann-Josef Hansen Presentation at Banco de Espana, Madrid, 19 November 2014 * The views expressed do not necessarily reflect the views of the Deutsche
More informationConsolidated Results Presentation Second quarter, 2015
Consolidated Results Presentation Second quarter, 2015 Índice general KEY QUARTERLY HIGHLIGHTS MOST SIGNIFICANT FIGURES RESULTS BUSINESS BRANCHES AND EMPLOYEES RISK MANAGEMENT LIQUIDITY CAPITAL PERSPECTIVES
More informationGrandfather and grandson LORENZO ROCCO
Grandfather and grandson LORENZO ROCCO Discussion Clémentine Garrouste Séminaire SHARE, 17 novembre 2014 1/12 MOTIVATIONS The proportion of grandparents who report to look after their grandchildren varies
More informationFlight to Where? Evidence from Bank Investments During the Financial Crisis
Flight to Where? Evidence from Bank Investments During the Financial Crisis Thomas Hildebrand, Jorg Rocholl and Alexander Schulz Discussion by Neeltje van Horen De Nederlandsche Bank GLOBAL RESEARCH FORUM
More informationD1.03: MORTGAGE REPAYMENT OVERVIEW
D1.03: MORTGAGE REPAYMENT OVERVIEW SYLLABUS Repayment mortgages Repayment profile Interest only mortgages Full and low cost endowment mortgages Unit-linked endowment mortgages ISA mortgages Pension mortgages
More informationEcon 330 Exam 1 Name ID Section Number
Econ 330 Exam 1 Name ID Section Number MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) If during the past decade the average rate of monetary growth
More informationTHE RESPONSIBILITY TO SAVE AND CONTRIBUTE TO
PREPARING FOR RETIREMENT: THE IMPORTANCE OF PLANNING COSTS Annamaria Lusardi, Dartmouth College* THE RESPONSIBILITY TO SAVE AND CONTRIBUTE TO a pension is increasingly left to the individual worker. For
More informationPersonal Finance Standards (Assignment Code #22210)
Personal Finance Standards (Assignment Code #22210) Rationale Statement: A citizen that lives within his or her income has more control over his or her life while expanding choices. Having the knowledge
More informationOptimal Consumption with Stochastic Income: Deviations from Certainty Equivalence
Optimal Consumption with Stochastic Income: Deviations from Certainty Equivalence Zeldes, QJE 1989 Background (Not in Paper) Income Uncertainty dates back to even earlier years, with the seminal work of
More informationêéëé~êåü=üáöüäáöüí House Prices, Borrowing Against Home Equity, and Consumer Expenditures lîéêîáéï eçìëé=éêáåéë=~åç=äçêêçïáåö ~Ö~áåëí=ÜçãÉ=Éèìáíó
êéëé~êåü=üáöüäáöüí January 2004 Socio-economic Series 04-006 House Prices, Borrowing Against Home Equity, and Consumer Expenditures lîéêîáéï The focus of the study is to examine the link between house
More informationSEB s Swedish Residential Mortgage Lending and Covered Bonds. Stockholm September, 2013
SEB s Swedish Residential Mortgage Lending and Covered Bonds Stockholm September, 2013 Contents SEB s Residential Mortgage Lending p.3 Asset Quality p.19 Cover Pool and Covered Bond Funding p.24 2 SEB
More informationHousing and Economic Crisis - What is Mortgage Refinancing?
The Housing and Economic Crisis: A Micro-Business Perspective 1. Do you own your home? Yes 84.3% 1991 No 15.8% 373 answered question 2363 skipped question 0 2. Do you have a mortgage on your home? Yes
More informationDániel Holló: Risk developments on the retail mortgage loan market*
Dániel Holló: Risk developments on the retail mortgage loan market* In this study, using three commercial banks retail mortgage loan portfolios (consisting of approximately 200,000 clients with housing
More informationTHE EFFECT OF PERSONAL BANKRUPTCY EXEMPTIONS ON DIVORCE. Katherine Lindsay Burns
THE EFFECT OF PERSONAL BANKRUPTCY EXEMPTIONS ON DIVORCE by Katherine Lindsay Burns A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science in Applied Economics
More informationChina's Social Security Pension System and its Reform
China's Pension Reform China's Social Security Pension System and its Reform Kaiji Chen University of Oslo March 27, 2007 1 China's Pension Reform Why should we care about China's social security system
More informationPersonal debt ON LABOUR AND INCOME
ON LABOUR AND INCOME Personal debt Although the economy and population are almost times the size of s, the two countries show several similarities. Both have relatively high per-capita income and living
More informationRefinancing, Profitability, and Capital Structure
Refinancing, Profitability, and Capital Structure András Danis Daniel Rettl Toni M. Whited October, 2013 The Broad Question We want to test the tradeoff theory of capital structure. Old and elusive goal.
More informationSocial Insurance Coverage in Urban China. John Giles Dewen Wang
Social Insurance Coverage in Urban China John Giles Dewen Wang Overview Social insurance schemes in Urban China Trends in social insurance coverage Regional variation Micro evidence of social insurance
More informationName Last First M.I. Marital Status Single Married Divorced Separated. Will your spouse be a student during the 2015-16 academic year?
INTERNATIONAL STUDENT FINANCIAL AID APPLICATION FILING DEADLINE: MARCH 1, 2015 PLEASE LIST ALL AMOUNTS IN US DOLLARS SECTION 1: STUDENT GENERAL INFORMATION Name Last First M.I. LSAC # Marital Status Single
More informationDOES COMMERCIAL BANK LENDING INCITE GROWTH? THE IMPACT OF COMMERCIAL LENDING ON REAL SECTOR GROWTH IN NIGERIA
DOES COMMERCIAL BANK LENDING INCITE GROWTH? THE IMPACT OF COMMERCIAL LENDING ON REAL SECTOR GROWTH IN NIGERIA Paul Ojeaga Bergamo University, Italy paul.ojeaga@unibg.it Omosefe Odejimi Igbinedion University
More informationIHS Global Economic and Financial Data
IHS Global Economic and Financial Data World s largest commercially available and frequently updated international data offering for over 200 global markets An indispensable resource for professionals
More informationStatement of Financial Circumstances (Centrelink reviews)
Statement of Financial Circumstances (Centrelink reviews) If the decision under review is about a debt, your financial circumstances may be relevant to the AAT s decision. It will be helpful if you fill
More informationDiscussion of Betermier, Calvet, and Sodini Who are the Value and Growth Investors?
Discussion of Betermier, Calvet, and Sodini Who are the Value and Growth Investors? NBER Summer Institute Asset Pricing Meeting July 11 2014 Jonathan A. Parker MIT Sloan finance Outline 1. Summary 2. Value
More informationTrends in Household Wealth Dynamics, 2005-2007
Technical Series Paper #09-03 Trends in Household Wealth Dynamics, 2005-2007 Elena Gouskova and Frank Stafford Survey Research Center - Institute for Social Research University of Michigan September, 2009
More informationIrish Life & Permanent PCAR PLAR Announcement 31 March 2011
1 Irish Life & Permanent PCAR PLAR Announcement 31 March 2011 Forward looking statement 2 A number of statements we make in our presentation and in the accompanying slides will not be based on historical
More informationANDERSON UNIVERSITY INVESTMENT POLICY
ANDERSON UNIVERSITY INVESTMENT POLICY I. General Investment Objectives A. The primary objective for investment of all funds of the university is to provide an adequate flow of resources sufficient to meet
More informationAnnouncement to the Copenhagen Stock Exchange 11/2005 12 August 2005 HALF-YEAR REPORT 2005
Announcement to the Copenhagen Stock Exchange 11/2005 12 August 2005 HALF-YEAR REPORT 2005 The BANK of Greenland Half-Year Report 2005 1/11 FINANCIAL HIGHLIGHTS and KEY FIGURES half-year half-year 2nd
More informationSmall Bank Comparative Advantages in Alleviating Financial Constraints and Providing Liquidity Insurance over Time
Small Bank Comparative Advantages in Alleviating Financial Constraints and Providing Liquidity Insurance over Time Allen N. Berger University of South Carolina Wharton Financial Institutions Center European
More informationThe Life-Cycle Motive and Money Demand: Further Evidence. Abstract
The Life-Cycle Motive and Money Demand: Further Evidence Jan Tin Commerce Department Abstract This study takes a closer look at the relationship between money demand and the life-cycle motive using panel
More informationPLEASE NOTE. For more information concerning the history of these regulations, please see the Table of Regulations.
PLEASE NOTE This document, prepared by the Legislative Counsel Office, is an office consolidation of this regulation, current to February 1, 2004. It is intended for information and reference purposes
More informationHousehold Finance and Consumption Survey
An Phríomh-Oifig Staidrimh Central Statistics Office Household Finance and Consumption Survey 2013 Published by the Stationery Office, Dublin, Ireland. Available from: Central Statistics Office, Information
More informationDemographic Implications for Capital Markets Euromoney Conference 2005 Rome, September 6
Demographic Implications for Capital Markets Euromoney Conference 2005 Rome, September 6 Stefan Schneider Chief International Economist Structure Demographic trends and their drivers Population dynamics
More information