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Staying Together for the Sake of the Home? House Price Shocks and Partnership Dissolution in the UK

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  • Helmut Rainer
  • Ian Smith

Abstract

This paper explores the importance of unanticipated house price shocks for marital dissolution in the UK using individual household data from the British Household Panel Survey (BHPS) and county-level house price data from the Halifax House Price Index (HHPI). Results suggest that positive and negative house price shocks have asymmetric e ects on the probability of partnership dissolution. Negative house price shocks significantly increase the risk of partnership dissolution, while positive house price shocks do not have a significant e ect in general. The destabilizing e ect 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.

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Bibliographic Info

Paper provided by Department of Economics, University of St. Andrews in its series Discussion Paper Series, Department of Economics with number 200809.

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Date of creation: 15 Aug 2008
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Handle: RePEc:san:wpecon:0809

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Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
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Fax: 01334 462444
Web page: http://www.st-andrews.ac.uk/economics/
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Keywords: House Price Shocks; Marital Dissolution.;

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Housing slumps increase divorce
    by chris dillow in Stumbling and Mumbling on 2008-09-16 12:03:50
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Cited by:
  1. Clara Mulder, 2013. "Family dynamics and housing," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(14), pages 355-378, September.
  2. Harminder Battu & Heather Brown & Miguel Costa-Gomes, 2013. "Not always for richer or poorer: The effects of income shocks and house price changes on marital dissolution," ERSA conference papers ersa13p250, European Regional Science Association.

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