@TechReport{repec:eca:wpaper:2013/389796,
type={Working Papers ECARES},
institution={ULB -- Universite Libre de Bruxelles},
author={Bram De Rock and Mariia Kovaleva and Tom Potoms},
title={Housing Wealth, Marital Stability and Labor Supply :an Intertemporal Analysis},
year={2025},
month={Mar},
number={2025-04},
abstract={We study how house price shocks affect marital stability and household labor supply. We address this question using a dynamic collective household model with limited commitment. We find that positive house price shocks increase the divorce rate, and that leverage ratios such as loan-to-income (LTI) and loan-to-value (LTV) determine the transmission of house price shocks on divorce. Given its importance, we then analyze a tightening of the credit market through the LTI-limit. We show that neglecting the divorce and intra-household bargaining channels significantly biases the individual welfare effects of such policies.},
keywords={Limited commitment; housing demand; labor supply; credit market policy},
doi={None},
url={https://ideas.repec.org/p/eca/wpaper/2013-389796.html},
}