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House Prices, Home Equity and Health

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  • John Gathergood
  • Eleonora Fichera

Abstract

Home equity has a strong impact on individual health. In UK household panel data home equity lowers the likelihood of home owners exhibiting a broad range of medical conditions. This is due to increased use of private health care, reduced hours of work and increased exercise. Home equity, unlike income, does not increase risky health behaviours such as smoking and drinking. Home equity is highly pro-cyclical. The positive health effects of home equity gains on home owner health over the business cycle offset the negative effects of labour market conditions and work intensity as shown in US data by Ruhm (2000).

Suggested Citation

  • John Gathergood & Eleonora Fichera, 2012. "House Prices, Home Equity and Health," Discussion Papers 12/07, University of Nottingham, School of Economics.
    • Handle: RePEc:not:notecp:12/07
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    Cited by:

    1. Ruhm, Christopher J., 2015. "Recessions, healthy no more?," Journal of Health Economics, Elsevier, vol. 42(C), pages 17-28.
    2. Costa-Font, Joan & Frank, Richard G. & Swartz, Katherine, 2019. "Access to long term care after a wealth shock: Evidence from the housing bubble and burst," The Journal of the Economics of Ageing, Elsevier, vol. 13(C), pages 103-110.
    3. Susan J Smith & Melek Cigdem & Rachel Ong & Gavin Wood, 2017. "Wellbeing at the edges of ownership," Environment and Planning A, , vol. 49(5), pages 1080-1098, May.
    4. Nayan Krishna Joshi, 2016. "Local house prices and mental health," International Journal of Health Economics and Management, Springer, vol. 16(1), pages 89-102, March.

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    More about this item

    Keywords

    health; wealth. JEL classification: I10; I13;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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