Liquidity constraints and housing prices
Subtitle: theory and evidence from the va mortgage
By: Jacob L. Vigdor.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10611; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10611.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Real property -- Prices.; Home ownership.
Description: "This paper employs a simple intertemporal model to show that presence of liquidity constraints can depress the price of a durable good below its net present rental value, regardless of the overall supply elasticity.  The existence of price effects implies that the relaxation of liquidity constraints is not Pareto improving, and may in fact be regressive.  Historical evidence, which exploits the fact that a clearly identifiable group, war veterans, enjoyed the most favored access to mortgage credit in the postwar era, supports the model.  The results suggest that more recent mortgage market innovations have served primarily to increase prices rather than home ownership rates, and that such innovations have the potential to exacerbate socioeconomic disparities in ownership rates"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/11/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.