January 1981
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13 Reads
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41 Citations
Review of Public Data Use
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January 1981
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13 Reads
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41 Citations
Review of Public Data Use
... As housing wealth accounts for almost two thirds of the total wealth of the median household (Iacoviello (2012)), it is the most important part of households total wealth. We create a measure of unexpected shocks in housing wealth that builds upon the fact that households tend to misestimate the value of their houses (Kish and Lansing (1954); Follain and Malpezzi (1981) ;Goodman Jr and Ittner (1992); Agarwal (2007); Benítez-Silva et al. (2015); Kuzmenko and Timmins (2011);Corradin et al. (2017)) and they only discover their true market value when they sell them. Therefore, households that overvalue (undervalue) their houses experience an unexpected negative (positive) shock in their housing wealth when they sell their houses. ...
January 1981
Review of Public Data Use