US housing collateral

How much does household collateral constrain regional risk sharing? construct a new data set of consumption and income data for the largest U.S. metropolitan areas, and we show that the extent of risk-sharing between regions varies substantially over time. In times when US housing collateral is scarce nationally, regional consumption is about twice as sensitive to income shocks.

60p matemthisonglamchi 18-06-2015 50 7   Download