Housing Lock: Dutch Evidence on the Impact of Negative Home Equity on Household Mobility

• 成果类型: Article
• 署名作者: Bernstein, Asaf; Struyven, Daan
• 署名单位: University of Colorado System; University of Colorado Boulder; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20150252
• 发表日期: 2022
• 页码: 1-32
• 关键词: separation; default; COSTS

摘要

This paper employs Dutch administrative population data to test the housing lock hypothesis: the conjecture that homeowners with negative home equity, low levels of financial assets, and restricted opportunities to borrow reduce their mobility. Variation in home equity driven by the timing of home purchase within a municipality and the harshness of Dutch recourse laws facilitates identification of housing lock effects. The 2SLS estimate for the effect of negative home equity is a 74-79 percent decline in mobility, where effects are substantially larger for households with low financial asset holdings or moves over longer distances.