00000nam 2200000za 4500 9.851307 CaOODSP 20221107154343 cr ||||||||||| 180206s2018 oncd obs f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2018-6E-PDF Zhou, Xiaoqing. Home equity extraction and the boom-bust cycle in consumption and residential investment [electronic resource] / by Xiaoqing Zhou. [Ottawa] : Bank of Canada, 2018. ii, 54 p. : charts (some col.) Bank of Canada staff working paper, 1701-9397 ; 2018-6 "February 2018." Includes bibliographical references (p. 33-35). “The consumption boom-bust cycle in the 2000s coincided with large fluctuations in the volume of home equity borrowing. Contrary to conventional wisdom, I show that homeowners largely borrowed for residential investment and not consumption. I rationalize this empirical finding using a calibrated two-goods, multiple-assets, heterogeneous-agent life-cycle model with borrowing frictions. The model replicates key features of the household-level and aggregate data. The model offers an alternative explanation of the consumption boom-bust cycle. This cycle is caused by large fluctuations in the number of borrowers and hence in total home equity borrowing, even though the fraction of borrowed funds spent on consumption is small"--Abstract, p. ii. Includes abstract in French. gccst Housing gccst Credit Econometric models Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2018-6 (CaOODSP)9.806221 PDF 751 KB https://publications.gc.ca/collections/collection_2018/banque-bank-canada/FB3-5-2018-6-eng.pdf