Does Home Production Replace Consumption Spending? Evidence from Shocks in Housing Wealth in the Great Recession

The work was supported by grants from the Social Security Administration through the Michigan Retirement Research Center (grant RRC08098401–06), the National Institute on Aging (R01AG035010, PI: Rohwedder), and the Leiden University Fund/van Walsem (Grant 4414/3-9-13$∖$V, vW). We have benefited from discussions with Rob Alessie, Adam Blandin, David Boisclair, Jochem de Bresser, Joseph Briggs, Agar Brugiavini, Monika Bütler, Christopher Carroll, Maria Casanova, Yoosoon Chang, Zsombor Cseres-Gergely, Ben Etheridge, Roozbeh Hosseini, Erik Hurst, Arie Kapteyn, Dirk Krueger, Italo Lopez-Garcia, Hamish Low, Melanie Lürhmann, Raffaele Miniaci, Raun van Ooijen, Kim Peijnenburg, Luigi Pistaferri, Thomas Post, Mariacristina Rossi, Gianluca Violante, Eliana Viviano, Tammy Schirle, Arthur van Soest, Pascal St-Amour, Anthony Webb, Guglielmo Weber, Jocelyn Wikle, Robert Willis, and Joachim Winter. We thank colleagues and participants at the 21st IPDC, Budapest; the Department of Economics Research Seminar Series, Leiden; the 4th ECB Conference on Household Finance and Consumption, Frankfurt; the Netspar IPW, Leiden; the QSPS Workshop, Logan, Utah; the IAEE, Milan; Future Well-Being of the Elderly, Montreal; and the Venice Summer Institute 2017, Venice. Finally, we thank the editor, Brigitte Madrian, and two anonymous referees for helpful suggestions that improved the paper. The findings and conclusions expressed are solely our own and do not represent the opinions or policy of the Social Security Administration, any agency of the federal government, or the Michigan Retirement Research Center.

A supplemental appendix is available online at http://www.mitpressjournals.org/doi/suppl/10.1162/rest_a_00794.