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Author:Hryshko, Dmytro 

Working Paper
House prices and risk sharing
We show that homeowners are able to maintain a high level of consumption following job loss or disability in periods of rising house values. However, the consumption drop for consumers who simultaneously lose their job and equity in their houses is substantial. Using data from the Panel Study of Income Dynamics, we verify that homeowners smooth consumption more than renters, and that consumption smoothing improves when houses appreciate in the area of residence. We calibrate and simulate a model of endogenous homeownership and home-equity loans, and show that the model is able to reproduce the patterns in the data quite well.
AUTHORS: Hryshko, Dmytro; Luengo-Prado, Maria Jose; Bent E. Sørensen
DATE: 2009

Working Paper
The rise and fall of consumption in the '00s
The major portion of U.S. gross domestic product (GDP) is accounted for by consumer spending, which significantly affects the business cycle. Consumer demand has been extremely volatile since 2000, especially given the booms and busts in housing values and in subprime mortgage lending. While it is well-established that housing net worth, credit availability, and household debt levels help to explain changes in consumer spending, the roles played by other potential determinants of consumption are not well identified or understood. This paper uses county-level data and a multiple-regression framework to explore how fluctuations in consumption between 2000 and 2012 are correlated with these macroeconomic variables: income, unemployment, debt, income inequality, consumer expectations, housing wealth, credit access, cash-out refinancings, and foreclosures. Four subperiods are considered: the "dot-com" recession (2001?2003), the "subprime boom" (2004?2006), the Great Recession (2007?2009), and the "tepid recovery" (2010?2012).
AUTHORS: Hryshko, Dmytro; Luengo-Prado, Maria Jose; Sorensen, Bent E.; Demyanyk, Yuliya
DATE: 2015-10-16

Working Paper
Moving to a new job: the role of home equity, debt, and access to credit
The severe decline in house prices during and after the Great Recession may have hampered adjustment in U.S. labor markets by limiting mobility of unemployed workers. Mobility will suffer if unemployed workers are reluctant to leave homes that, with debt exceeding value, cannot be disposed of without injecting cash or defaulting?a pattern referred to as "housing lock-in." If such reluctance keeps workers from moving from depressed areas to areas with available jobs, the Beveridge curve, which depicts the relationship between vacancies and joblessness, may shift outward. To examine whether this has been the case in the United States in recent years, the authors use individual-level credit reports merged with loan-level mortgage data to estimate how mobility relates to home equity when labor markets are weak or strong, and they develop and calibrate a dynamic quantitative model of consumption, housing, employment, and mobility that replicates the data well.
AUTHORS: Demyanyk, Yuliya; Sorensen, Bent E.; Hryshko, Dmytro; Luengo-Prado, Maria Jose
DATE: 2016-01-25

Working Paper
The Rise and Fall of Consumption in the 2000s
U.S. consumption has gone through steep ups and downs since the turn of the millennium, but the causes of these fluctuations are still imperfectly identified. We quantify the relative impact on consumption growth of income, unemployment, house prices, credit scores, debt, expectations, foreclosures, inequality, and refinancings for four subperiods: the ?dot-com recession? (2001-2003), the ?subprime boom? (2004-2006), the Great Recession (2007-2009), and the ?tepid recovery? (2010-2012). We document that the explanatory power of different factors varies by subperiods, implying that a successful modeling of this decade needs to allow for multiple causal determinants of consumption.
AUTHORS: Sorensen, Bent E.; Demyanyk, Yuliya; Luengo-Prado, Maria Jose; Hryshko, Dmytro
DATE: 2015-05-21

Working Paper
Moving to a job: The role of home equity, debt, and access to credit
Using credit report data from two of the three major credit bureaus in the United States, we infer with high certainty whether households move to other labor markets defined by metropolitan areas. We estimate how moving patterns relate to labor market conditions, personal credit, and homeownership using panel regressions with fixed effects which control for all constant individual-specific traits. We interpret the patterns through simulations of a dynamic model of consumption, housing, and location choice. We find that homeowners with negative home equity move more than other homeowners, in particular when local unemployment growth is high overall, negative home equity is not an important barrier to labor mobility.
AUTHORS: Demyanyk, Yuliya; Hryshko, Dmytro; Luengo-Prado, Maria Jose; Sorensen, Bent E.
DATE: 2013

Working Paper
House prices and risk sharing
We show that homeowners are able to maintain a high level of consumption following job loss or disability in periods of rising house values. However, the consumption drop for consumers who simultaneously lose their job and equity in their houses is substantial. Using data from the Panel Study of Income Dynamics, we verify that homeowners smooth consumption more than renters, and that consumption smoothing improves when houses appreciate in the area of residence. We calibrate and simulate a model of endogenous homeownership and home-equity loans, and show that the model is able to reproduce the patterns in the data quite well.
AUTHORS: Hryshko, Dmytro; Luengo-Prado, Maria Jose; Bent E. Sørensen
DATE: 2009

Journal Article
Why Has Consumption Been So Volatile in the New Millennium?
U.S. consumption has gone through steep ups and downs since the turn of the millennium, but the causes of these fluctuations are still imperfectly identified. We describe research that quantifies the relative impact of nine significant determinants of consumption growth. The explanatory power of these factors varies by period, implying that successful modelling of this decade poses many challenges
AUTHORS: Sorensen, Bent E.; Kolliner, Daniel; Hryshko, Dmytro; Demyanyk, Yuliya
DATE: 2015-07

Journal Article
Keeping the house or moving for a job
Some reports have suggested that employers can?t fill job openings in some places because they can?t entice workers to move. Workers won?t move, so the story goes, when doing so will mean losing money on their homes, and this is the case for many homeowners since the housing crash. But new research shows that homeowners will move when they have a better job offer, even if they will lose money on their home when they sell it.
AUTHORS: Hryshko, Dmytro; Luengo-Prado, Maria Jose; Sorensen, Bent E.; Demyanyk, Yuliya
DATE: 2013-07

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