Consumption Effects of Mortgage Payment Holidays: Evidence During the COVID-19 Pandemic PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Consumption Effects of Mortgage Payment Holidays: Evidence During the COVID-19 Pandemic PDF full book. Access full book title Consumption Effects of Mortgage Payment Holidays: Evidence During the COVID-19 Pandemic by Bruno Albuquerque. Download full books in PDF and EPUB format.
Author: Bruno Albuquerque Publisher: International Monetary Fund ISBN: Category : Business & Economics Languages : en Pages : 58
Book Description
We use UK transaction-level data during the Covid-19 pandemic to study whether mortgage payment holidays (PH) can act as a mechanism for smoothing household consumption following negative aggregate shocks. Our results suggest that mortgage PH were accessed by both households with pre-existing financial vulnerabilities and by those with stronger balance sheets, including buy-to-let investors. We also find that the temporary liquidity relief provided by PH allowed liquidity-constrained households to maintain higher annual consumption growth compared to those non-eligible for the policy. Finally, we find that mortgage PH led to higher saving rates for more financially-stable households.
Author: Bruno Albuquerque Publisher: International Monetary Fund ISBN: Category : Business & Economics Languages : en Pages : 58
Book Description
We use UK transaction-level data during the Covid-19 pandemic to study whether mortgage payment holidays (PH) can act as a mechanism for smoothing household consumption following negative aggregate shocks. Our results suggest that mortgage PH were accessed by both households with pre-existing financial vulnerabilities and by those with stronger balance sheets, including buy-to-let investors. We also find that the temporary liquidity relief provided by PH allowed liquidity-constrained households to maintain higher annual consumption growth compared to those non-eligible for the policy. Finally, we find that mortgage PH led to higher saving rates for more financially-stable households.
Author: Bruno Albuquerque Publisher: International Monetary Fund ISBN: Category : Business & Economics Languages : en Pages : 52
Book Description
We study how household concerns about their future financial situation may affect the marginal propensity to consume (MPC) during the COVID-19 pandemic. We use a representative survey of UK households to compute the MPC from a hypothetical transfer of £500. We find that household expectations play a key role in determining differences in MPCs across households: households concerned about not being able to make ends meet have a 20% higher MPC than other households. Our findings suggest that policies targeted to vulnerable and financially distressed households may prove more effective in stimulating demand than providing stimulus payments to all households.
Author: Becky Tunstall Publisher: Policy Press ISBN: 1447365909 Category : Political Science Languages : en Pages : 250
Book Description
The UK housing system has been described as being in ‘crisis’, but suddenly in 2020 homes were on the COVID-19 frontline, used for shielding, isolating and care. Most were used by more people, for more hours, for more activities. Many households were cut off from normal services and contacts, and many lost the means to pay for their homes. Millions of infections occurred at home, and inequalities in household type, housing space, cost and tenure contributed to the unequal impact of the pandemic. This book brings together a wealth of data, individual testimony and analysis, in one convenient resource for students, scholars and practitioners.
Author: Ying Fan Publisher: ISBN: Category : Languages : en Pages : 48
Book Description
The high growth rate of mortgage debt in various emerging and developed economies has captured headlines following the financial crisis. In this paper, we investigate how mortgage debt impacts household consumption behavior and various components of household consumption. Utilizing a comprehensive household survey data from China, we show that households with a mortgage consume a higher portion of their income than households without a mortgage. This is in line with the argument that having a mortgage reduces the uncertainty that the household faces regarding how much to save each month in order to be able to own a house, and this reduced uncertainty leads to lower monthly savings for the purpose of buying a house. We also find that among households with a mortgage, those who spend a larger share of their income on mortgage payments spend less of their income on consumption, reflecting the crowding out effect of mortgage payments on household consumption. Furthermore, we show that a government policy of decreasing the maximum loan-to-value ratio has a significant impact on the consumption behavior of households. The current paper offers the first evidence of the impact of growing mortgage debt on the consumption behavior of households. Our results will have implications for government policies that encourage mortgage borrowing.
Author: Bruce D. Meyer Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We examine the distribution of household consumption, income and savings from 2019 through the end of 2020 using the Consumer Expenditure Survey (CE) and other data. This is the first work to study the impact of the COVID-19 pandemic on economic well-being using nationally representative consumption data. We find that low percentiles of the consumption distribution see pre-pandemic growth and little change with the onset of the pandemic. On the other hand, higher percentiles of the consumption distribution do not increase before the pandemic and fall in 2020. Leveraging the rich demographics of our microdata, we find the most pronounced decline for high-educated families near the top of the consumption distribution and seniors in the top half of the distribution. The decrease in the top half is less evident for non-Whites. These patterns for consumption are different than those for income, particularly in the upper part of the distribution. Liquid assets increase in the upper half of the distribution, consistent with the divergence between the upper half of the income and consumption distributions. Our results suggest that the policy response to the pandemic averted a decrease in consumption for the most materially disadvantaged families, while changes in aggregate consumption accord with the observed patterns in the top of the consumption distribution. The changes for various types of consumption, and the distribution of those changes across the material resource distribution, are consistent with reductions in travel to work--which were large for those with greater material advantage--and restrictions on outlets for consumption.
Author: Dimitrios Christelis Publisher: ISBN: Category : COVID-19 (Disease) Languages : en Pages : 57
Book Description
Using new panel data from a representative survey of households in the six largest euro area economies, the paper estimates the impact of the Covid-19 crisis on consumption. The panel provides, each month, household-specific indicators of the concern about finances due to Covid-19 from the first peak of the pandemic until October 2020. The results show that this concern causes a significant reduction in non-durable consumption. The paper also explores the potential impact on consumption of government interventions and of another wave of Covid-19, using household-level consumption adjustments to scenarios that involve positive and negative income shocks. Fears of the financial consequences of the pandemic induce a significant reduction in the marginal propensity to consume, an effect consistent with models of precautionary saving and liquidity constraints. The results are robust to endogeneity concerns through use of panel fixed effects and partial identification methods, which account also for time-varying unobservable variables, and provide informative identification regions of the average treatment effect of the concern for Covid-19 under weak assumptions.
Author: Bruno Albuquerque
Author: Bruno Albuquerque
Author: Bruno Albuquerque
Author: Bruno Albuquerque
Author: Andreas Hackethal
Author: Becky Tunstall
Author: Ying Fan
Author: Bruce D. Meyer
Author: Dimitrios Christelis
Author: Economic and Social Research Institute
Author: United States