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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

The 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.

Suggested Citation

  • Helmut Rainer & Ian Smith, 2010. "Staying together for the sake of the home?: house price shocks and partnership dissolution in the UK," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(3), pages 557-574.
  • Handle: RePEc:bla:jorssa:v:173:y:2010:i:3:p:557-574
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    Cited by:

    1. Mohammad Reza Farzanegan & Hassan Fereidouni Gholipour, 2016. "Divorce and the cost of housing: evidence from Iran," Review of Economics of the Household, Springer, vol. 14(4), pages 1029-1054, December.
    2. Begley, Jaclene, 2017. "Legacies of homeownership: Housing wealth and bequests," Journal of Housing Economics, Elsevier, vol. 35(C), pages 37-50.
    3. 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.
    4. Clara H. Mulder, 2013. "Family dynamics and housing," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(14), pages 355-378, September.
    5. repec:kap:jfamec:v:38:y:2017:i:4:d:10.1007_s10834-017-9532-9 is not listed on IDEAS

    More about this item

    JEL classification:

    • 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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