Staying together for the sake of the home?: house price shocks and partnership dissolution in the UK
AbstractThe paper explores the importance of unanticipated house price shocks for marital dissolution in the UK by using individual household data from the British Household Panel Survey and county level house price data from the Halifax house price index. Results suggest that positive and negative house price shocks have asymmetric effects on the probability of partnership dissolution. Negative house price shocks significantly increase the risk of partnership dissolution, whereas positive house price shocks do not have a significant effect in general. The destabilizing effect of negative house price shocks is particularly pronounced for couples with dependent children, low family income and high mortgage debt. Results are robust to a wide variety of specifications. Copyright (c) 2010 Royal Statistical Society.
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Bibliographic InfoArticle provided by Royal Statistical Society in its journal Journal of the Royal Statistical Society: Series A (Statistics in Society).
Volume (Year): 173 (2010)
Issue (Month): 3 ()
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- Helmut Rainer & Ian Smith, 2008. "Staying Together for the Sake of the Home? House Price Shocks and Partnership Dissolution in the UK," Discussion Paper Series, Department of Economics 200809, Department of Economics, University of St. Andrews.
- Rainer, Helmut & Smith, Ian, 2010. "Staying together for the sake of the home?: house price shocks and partnership dissolution in the UK," Munich Reprints in Economics 19755, University of Munich, Department of Economics.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- D10 - Microeconomics - - Household Behavior - - - General
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
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