The Impact of Housing Wealth Shocks over the Life Cycle on Health and Wellbeing (with David Frisvold and Padmaja Ayyagari)


This paper examines the effects of housing wealth shocks on mental and physical health and wellbeing using the 1975-2015 Panel Study of Income Dynamics. We exploit exogenous changes in housing wealth using market-level changes in housing price to identify the impact of contemporaneous housing wealth shocks on individuals. We will also estimate the cumulative effect of housing wealth shocks experienced by an individual over their lifetime using a flexible approach that allows the impact of wealth shocks to vary over time and by age. Preliminary results show a positive effect of contemporaneous increases in housing wealth on self-reported health status but no significant impact on the incidence of depression and metabolic disorders.

Manda Tiwari
Manda Tiwari
PhD Candidate in Economics

I am a PhD candidate in Economics at the University of Iowa.