Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 18th May 2024, 04:50:50am BST
Session Chair: Carolin Elisabeth Hoeltken, University of Cambridge, United Kingdom;
Location:Jesus College, Frankopan Hall
Breakout room
Presentations
Working Experience, Financial Literacy and Mortgage Stress
Hu, Mingzhi1; Lin, Zhenguo {Len}2; Liu, Yingchun3
1Zhejiang University of Technology, Hangzhou, China; 2Florida International University, United States of America; 3University of North Texas, United States of America;
Discussant: Tian, Liu (Shanghai University of Finance and Economics)
This paper examines the effect of financial literacy on mortgage stress. Using data from the Panel Study of Income Dynamics (PSID), we find that borrowers with high levels of financial literacy are 60.3 percent less likely to suffer from mortgage stress than borrowers with low levels of financial literacy, after controlling for household characteristics, loan features, geographic effects, and working in the financial industry. Our estimated results are robust to potential sample selection bias and functional misspecification. In addition, we also find that the effect of financial literacy varies across borrowers of different ages. Further analysis reveals strong cross effects of financial literacy and quantitative reasoning on mortgage stress.
Housing Wealth and Overpayment: When Money Moves In
1Brigham Young University, Marriott School of Business, United States of America; 2UCLA Anderson School of Management;
Discussant: Liu, Yingchun (University of North Texas)
We construct a novel dataset tracking households across property purchases covering 25 years of moves within the U.S. We find that information frictions in residential real estate markets cause movers with larger exogenous housing wealth to overpay for their next house, relative to both time varying local prices as well as time invariant characteristics of the property itself. These housing wealth driven overpayments are associated with larger positive price impacts to the surrounding neighborhood and are larger for local movers relative to non-local movers. The aggregate effect of housing wealth inflows is to increase commuting-zone-level house price growth.
