Full Citation

Title: Income Shocks and Housing Spillovers: Evidence from the World War I Veterans’ Bonus

Citation Type: Journal Article

Publication Year: 2022

ISBN:

ISSN: 0094-1190

DOI: 10.1016/J.JUE.2022.103494

NSFID:

PMCID:

PMID:

Abstract: This paper documents how a one-time income shock can alter the household wealth distribution through local housing market channels. In 1936, the United States government unexpectedly gave World War I veterans a large income transfer. This payment, equivalent to 1936 per capita income, greatly improved recipients’ 1940 home values and homeownership rates compared to those of their 1930 neighbors. These home value gaps widened as the spatial intensity of the shock increased but only for likely home purchasers. Loan-level data suggest this combination of direct benefits and negative neighborhood spillovers derived from veterans crowding out other potential borrowers.

Url: https://www.sciencedirect.com/science/article/pii/S0094119022000717?via%3Dihub

User Submitted?: No

Authors: Quincy, Sarah

Periodical (Full): Journal of Urban Economics

Issue:

Volume: 132

Pages: 1-30

Data Collections: IPUMS USA, IPUMS USA - Ancestry Full Count Data

Topics: Housing and Segregation, Poverty and Welfare

Countries: