Low Net Worth Research Articles

Familiarity bias in direct stock investment by individual investors

PurposeThis study examines the relationship between investors' familiarity bias, including the home bias and endowment bias, and their financial situations, expectations and personal characteristics.Design/methodology/approachUsing the 2019 Survey of Consumer Finances, the authors utilize an ordinary least squares regression to identify the presence of endowment bias and home bias in individual investors' direct stock holdings and use a Heckman selection model to examine determinants of the extent of endowment bias and home bias.FindingsThis study finds that investors with higher income and more education, men, non-white investors and people with greater risk tolerance are actually at a greater risk of endowment bias. This study also identifies a profile of investors that are more likely to have a home bias: with less financial sophistication, lower net worth, older, female, more risk-averse, with a positive expectation about the domestic economy and a relatively shorter investment horizon.Originality/valueThis paper is among the first to use US investors' directly reported stock holdings to examine the individual characteristics that are correlated with greater familiarity bias, providing financial professionals with information about how to allocate their limited time in providing education to a variety of clients.

Who uses robo-advisory services, and who does not?

The purpose of this study was to compare the demographic, attitudinal, and behavioral character- istics of U.S. consumers in their current and expected use of robo-advisory services, traditional financial planning services, or a combination of the two services. Findings showed a difference between those who used robo-advisory services and those who used traditional financial planning services. Overall, those who used a traditional financial planner were older and reported higher levels of net worth, while users of robo-advisors, on average, reported lower levels of net worth. In addition, those who used traditional financial planning services reported a larger percentage of their total net worth from an inheritance, whereas a lower percentage of net worth from an inheritance was reported by robo-advisor users. Results showed that users of robo-advisory services generally (1) had lower income, (2) had lower net worth, (3) had received no or less inheritance, and (4) were less impulsive financially.

Socioeconomic Influence on Cervical Fusion Outcomes.

A retrospective observational study. The aim of this study was to compare postoperative outcomes following cervical fusion based on socioeconomic status (SES) variables including race, education, net worth, and homeownership status. Previous studies have demonstrated the effects of patient race and income on outcomes following cervical fusion procedures. However, no study to date has comprehensively examined the impact of multiple SES variables. We hypothesized that race, education, net worth, and homeownership influence important outcomes following cervical fusion. Optum's de-identified Clinformatics Data Mart (CDM) database was queried for patients undergoing first-time inpatient cervical fusion from 2003 to 2021. Patient demographics, SES variables, and the Charlson comorbidity index were obtained. Primary outcomes were hospital length of stay and 30-day rates of reoperation, readmission, and postoperative complications. Secondary outcomes included postoperative emergency room visits, discharge status, and total hospital charges. A total of 111,914 patients underwent cervical spinal fusion from 2003 to 2021. Multivariate analysis revealed that after controlling for age, sex, and Charlson comorbidity index, Black race was associated with a higher rate of 30-day readmissions [odds ratio (OR): 1.11, 95% CI: 1.03-1.20]. Lower net worth (vs. >$500K) and renting (vs. owning a home) were significantly associated with both higher rates of 30-day readmissions (OR: 1.29, 95% CI: 1.17-1.41; OR: 1.34, 95% CI: 1.22-1.49), and emergency room visits (OR: 1.29, 95% CI: 1.18-1.42; OR: 1.11, 95% CI: 1.00-1.23). Lower net worth (vs. >$500K) was also associated with increased complications (OR: 1.22, 95% CI: 1.14-1.31). Socioeconomic variables, including patient race, education, and net worth, influence postoperative metrics in cervical spinal fusion surgery. Future studies should focus on developing and implementing targeted interventions based on patient SES to reduce disparity.

National Prevalence of Social Isolation and Loneliness in Adults with Chronic Obstructive Pulmonary Disease.

Rationale: Social isolation and loneliness are gaining recognition for their role in health outcomes, yet they have not been defined in people with chronic obstructive pulmonary disease (COPD). Objective: To determine the national prevalence of and characteristics associated with social isolation and loneliness in people with COPD. Methods: This is a cross-sectional study of community-dwelling adults aged ⩾50 years in the nationally representative HRS (Health and Retirement Study) (2016-2018). Participants self-reported COPD and supplemental oxygen use and were categorized into three groups: 1) no COPD; 2) COPD; and 3) COPD on oxygen. Social isolation was defined using a nine-item scale indicating minimal household contacts, social network interaction, and community engagement. Loneliness was measured using the 3-Item UCLA Loneliness Scale. Multivariable logistic regression defined prevalence and associated characteristics for both. Results: Participants (n = 10,384) were on average 68 years old (standard deviation, ±10.5), 54% female, 10% Black, 11% self-reported COPD, and 2% self-reported supplemental oxygen. Overall, 12% were socially isolated, 12% lonely, and 3% both socially isolated and lonely. People with COPD had a higher adjusted prevalence of social isolation (no COPD: 11%; COPD: 16%; COPD on oxygen: 20%; P < 0.05) and loneliness (no COPD: 11%; COPD: 18%; COPD on oxygen: 22%; P < 0.001). In those with COPD, characteristics associated with social isolation (P < 0.05) included sex (men: 22%; women: 13%), non-Hispanic White ethnicity (White: 19%; Black: 7%), low net worth (<$6,000: 32%; $81,001-$239,000: 10%), depression (depression: 24%; no depression: 14%), having difficulty with one or more activities of daily living (one or more difficulty: 22%; no difficulty: 14%), and current cigarette use (current: 24%; never: 13%). Characteristics associated with loneliness (P < 0.05) included younger age (50-64 yr: 22%; 75-84 yr: 12%), being single (single: 32%; married: 12%), depression (depression: 36%; no depression: 13%), having difficulty with one or more activities of daily living (one or more difficulty: 29%; no difficulty: 15%), diabetes (diabetes: 26%; no diabetes: 17%), and heart disease (heart disease 23%; no heart disease: 17%). Conclusions: Nearly one in six adults with COPD experience social isolation, and one in five experience loneliness, with almost twice the prevalence among those on supplemental oxygen compared with the general population. Demographic and clinical characteristics identify those at highest risk to guide clinical and policy interventions.

Student debt incidence: recent data and conceptual issues

Abstract: In recent years, the rising level of student debt has led to calls for increased government assistance in the form of partial or full student debt cancellation. In this Commentary, we use the 2019 Survey of Consumer Finances (SCF) to study the incidence of student debt and cancellation benefits along quantiles of household income, net worth, and our estimate of lifetime wealth. We show that student debt is highly concentrated among households with low net worth, but much more evenly distributed across income and lifetime wealth. We then highlight several challenges in using such statistics to draw conclusions about whether cancellation will ultimately increase or decrease inequality in lifetime wealth, and we outline open questions for future research. Replication materials for this Commentary may be found at https://github.com/tphelanECON/student_debt_SCF

Association of household net worth with healthcare utilization in 90-day window after radical cystectomy using real-world data.

444 Background: Radical cystectomy (RC) remains the gold standard for muscle invasive bladder cancer yet confers significant healthcare costs. Prior work on the impact of costs commonly relied on comparisons by insurance status (yes/no) and income, a partial proxy for net worth, ie one’s net economic standing or value of financial assets minus liabilities. Few have examined the relationship between net worth and encounter type. Methods: We identified commercially insured Black, White, Asian, and Hispanic patients who underwent radical cystectomy between January 1, 2007 to April 10, 2021 in The OptumLabs Data Warehouse, a longitudinal, real-world data asset with de-identified administrative claims and electronic health record data. Demographics and costs included household net worth, health plan costs, out of pocket costs, and total healthcare costs accrued from index admission to 90 days after. Multivariable logistic regression models were generated for each encounter type [acute inpatient, emergency department (ED), outpatient, and office visit]. Odds ratios (OR) are presented with 95% confidence intervals (CI) and p-values. A p value of &lt;0.05 was deemed statistically significant. Results: The study cohort was comprised of 141,903 patients (2.4% were Black, 11.4% Hispanic, and 8.1% Asian). Household net worth categories were near evenly distributed amongst the study cohort. Acute inpatient encounters harbored the greatest health plan (mean $24,642.80, SD $57,218.41) and out of pocket costs (mean $1,428.24, SD $2108). Office visits conferred the lowest health plan costs (mean $1,126.78, SD $4,119.12) while ED visits had the lowest out of pocket costs (mean $181.88; SD $399.65). Black patients harbored increased odds of an acute inpatient encounter (HR 1.22, 95% CI 1.16-1.29) and ED encounter (HR 1.20, 95% CI 1.14-1.27) while Asian (HR 0.76, 95% CI 0.69-0.85, p&lt;0.001) and Hispanic (HR 0.74, 95% CI 0.69-0.78, p&lt;0.001) patients had lower odds of an outpatient encounter. Increasing household net worth was associated with decreasing odds of acute inpatient or ED encounters, and greater odds of an office visit. Conclusions: Our study is the largest cohort of commercially insured patients to examine variations in healthcare utilization by net worth in the 90 days after radical cystectomy. Those with lower net worth harbored greater risk of an acute inpatient encounter (and higher medical costs) while those with the greater net worth had greater odds of office visits (and lower costs). Greater financial flexibility (i.e., net worth) continues to confer differences in healthcare utilization (and lower healthcare costs), even within a commercially insured population. Household net worth provides a more comprehensive assessment of patients’ financial flexibility than income alone and functions as proxy for healthcare access and privilege that could not be directly measured.

Area‐level deprivation is associated with rate of memory decline in late life within a community‐based cohort

AbstractBackgroundResiding in a disadvantaged neighborhood is associated with adverse health outcomes, as well as increased risk for dementia. However, it remains unclear whether area‐level deprivation impacts the rate of age‐related memory decline, especially in community‐based populations.MethodWe quantified late life neighborhood level disadvantage using the 2013 Area Deprivation Index (ADI) for 2,554 participants with complete data of interest within the Wisconsin Longitudinal Study – a same‐aged, community‐based cohort of randomly selected 1957 Wisconsin high school graduates. Delayed recall for a 10‐item word list was assessed at two timepoints in mid to late life (Time 1 (∼2004): age 64.39 + 0.74 years; and Time 2 (∼2011): age 71.28 + 0.97 years). We used multivariate linear regression models to evaluate whether ADI was associated with memory performance at each time point, and with the annualized rate of change in memory performance over time.ResultIncreasing ADI was significantly correlated with lower adolescent IQ, less educational attainment, lower net worth, higher vascular risk scores, elevated depression metrics, and increasing age (all p&lt;0.001). Mean ADI did not differ by sex, but was significantly higher in ApoE‐4 positive carriers (t(2552) =2.257, p=0.024). Results of multivariate regression indicated that greater area‐level deprivation (higher ADI) was not associated with delayed recall performance at Time 1 (b = 0.001; 95% CI: ‐0.003 to 0.005, P=0.790), but was associated with poorer delayed recall performance at Time 2 (B = ‐0.004; 95% CI: ‐0.007 to ‐0.001, P=0.019). Higher ADI also predicted greater annualized rate of decline in delayed recall between timepoints (B = ‐0.001; 95% CI: ‐0.001 to ‐9.9^10‐5, P=0.025). These findings held after controlling for individual‐level demographic and socioeconomic variables (age, sex, adolescent IQ, years of education, net worth), genetic risk (ApoE‐4 carrier status), depression, hearing loss, and a modified CAIDE (Cardiovascular Risk Factors, Aging, and Incidence of Dementia) risk score calculated at Time 1.ConclusionEven after accounting for established individual‐level demographic, socioeconomic, health, and genetic risk factors for cognitive decline, greater neighborhood disadvantage is associated with an accelerated rate of annualized decline in delayed recall performance across mid to late life in a community sample.

Housing choices and their implications for consumption heterogeneity

This paper proposes a model to jointly explain two stylized facts observed in the recent empirical literature—the existence of a significant size of wealthy hand-to-mouth consumers and negative marginal propensities to consume associated with housing upgrades. The key ingredients of the model are a realistic set of housing choices, sizable down payment requirements, transaction costs, and endogenous borrowing constraints. Moreover, in the presence of unanticipated income shocks, this richness in marginal propensities to consume has significant implications for aggregate consumption and helps explain the puzzling increase in savings by low net worth households observed during the Great Recession as well as the consumption responses to recent tax rebates.

Maternal Economic Well-Being and Mental Health among Young Adult Children: Race/Ethnicity.

This study aimed to examine the relationship between maternal economic well-being and children’s mental health outcomes in adulthood and to consider the moderating effect of race/ethnicity. This study used data from the National Longitudinal Survey of Youth 1979 and the National Longitudinal Survey of Youth 79 for Children and Young Adults. The two datasets were merged, and 4224 pairs were selected for the final sample. Ordinary linear regression and logistic regression analyses were used. Poverty and lower net worth among mothers were positively associated with their children’s depression in young adulthood. Race/ethnicity moderated the relationship between maternal poverty and children’s depression. Therefore, women’s economic resources may be an important factor in the development of mental health issues among their children in young adulthood. Developing anti-poverty policies that target women may assist in reducing depressive symptoms in their children once they reach young adulthood, specifically for non-Hispanic White children.

Heterogeneity in preventive behaviors during COVID-19: Health risk, economic insecurity, and slanted information

The present study examines whether people respond heterogeneously to statewide social distancing mandates as a function of factors that proxy for health risk, economic insecurity, and media consumption. Using longitudinal data of 7400 American adults between March 10 and June 23, 2020, the study examines social-distancing and mask-wearing behaviors. We use a staggered difference-in-difference model to explore whether state policies lead to preventive behaviors. We further examine heterogeneity in individual responses to state mandates by including interaction terms with health risk, economic insecurity, and media consumption. The study finds that state policies lead to increased adoption of these behaviors. Our findings also suggest that old age and living with the elderly are key predictors of preventive behavior adoption in the presence or even absence of state mandates. However, the economically insecure, such as the unemployed, those with low incomes and net worth, or without health insurance, are less likely to adopt preventive behaviors regardless of the mandates. The adoption of the behaviors is also polarized between CNN users and Fox News/Social Media users, with greater compliance by the former.

Monetary policy and household net worth

This paper investigates the interrelation between household balance sheets, collateral constraints, and monetary policy. Using data on the U.S. economy, we estimate a monetary DSGE model with financial frictions and occasionally binding borrowing constraints. The model implies stronger effects of monetary policy interventions when the borrowing constraint is binding compared to situations when it turns slack. In a prediction analysis we find that, out of a set of alternative plausible endogenous model variables, the level of household net worth is the single best predictor of the tightness of the borrowing constraint, which implies that monetary policy is more effective when household net worth is low. We test this model prediction in the data and provide robust empirical evidence on asymmetric effects of monetary policy across the household net worth cycle that validates the model predictions. A contractionary monetary policy shock leads to a large and significant fall in economic activity during periods of low household net worth. In contrast, monetary policy shocks have only small and mostly insignificant effects when net worth is high.

Millennial Generation: Information on the Economic Status of Millennial Households Compared to Previous Generations

Recent research indicates that, across three key measures, economic mobility in the United States is limited. Specifically, the Millennial generation (those born between 1982 and 2000) might not have the same opportunity as previous generations had to fare better economically than their parents. According to studies GAO reviewed, the share of people making more money than their parents at the same age (absolute mobility) has declined over the last 40 years, and the chances of moving up the income distribution (relative mobility) have been flat over time. Using a third measure of economic mobility (intergenerational income elasticity), researchers have found that income in adulthood is linked to how much a person's parents made, and that between one-third and two-thirds of economic status is passed down from parents to children. This is especially true of the lowest and highest income groups. Researchers also identified race and geography as key determinants of an individual's economic mobility. Millennials have different financial circumstances than Generation X (born 1965-1981) and Baby Boomers (born 1946-1964), and in light of flat or declining economic mobility, there is uncertainty about how they will fare financially as they age. A snapshot of data that allowed GAO to compare Millennials aged 25-34 to the previous two generations at similar ages showed that Millennial households were more likely than other generations to be college educated; however, incomes have remained flat across the three generations, implying that Millennials have not yet benefited from the potential additional lifetime income earned by college graduates. Millennial households had significantly lower median and average net worth than Generation X households at similar ages, especially among those with low net worth. Median net worth for the lowest quartile of Baby Boomers and Generation X was around zero, but it was substantially negative for Millennials, indicating that debt was greater than assets for the median low net worth Millennial household. Regarding assets, a significantly lower percentage of Millennials owned homes compared to previous generations at similar ages, but had retirement resources at rates comparable to Generation X and Baby Boomers. Finally, Millennials were more likely to have student loan debt that exceeded their annual income. It remains to be seen how these factors will affect Millennials' financial circumstances in the long run, including retirement.

The long-term financial outcome of children diagnosed with ADHD.

Characterize the early trajectories of financial functioning in adults with history of childhood ADHD and use these trajectories to project earnings and savings over the lifetime. Data were drawn from a prospective case-control study (PALS) following participants with a rigorous diagnosis of ADHD during childhood (N = 364) and demographically matched controls (N = 240) for nearly 20 years. Participants and their parents reported on an array of financial outcomes when participants were 25 and 30 years old. At age 30, adults with a history of ADHD exhibited substantially worse outcomes than controls on most financial indicators, even when they and their parents no longer endorsed any DSM symptoms of ADHD. Between ages 25 and 30, probands had exhibited considerably slower growth than controls in positive financial indicators (e.g., monthly income) and substantially less reduction than controls in indicators of financial dependence (e.g., living with parents), indicating worsening or sustained deficits on nearly all measures. When earnings trajectories from age 25 to age 30 were extrapolated using matched census data, male probands were projected to earn $1.27 million less than controls over their working lifetime, reaching retirement with up to 75% lower net worth. The financial deficit of adults with history of childhood ADHD grows across early adulthood. Projections based on early financial trajectories suggest very large cumulative differences in earnings and savings. With or without persistence of the DSM symptoms, the adult sequela of childhood ADHD can be conceptualized as a chronic condition often requiring considerable support from others during adulthood. (PsycINFO Database Record (c) 2020 APA, all rights reserved).

Short-Term Impact of Covid-19 on Consumption and Labor Market Outcomes: Evidence from Singapore

We examine the short-term impact of COVID-19 on consumption spending and labor market outcomes. Using monthly panel data of individuals mainly aged 50–70 in Singapore, we find that COVID-19 reduced consumption spending and labor market outcomes immediately after its outbreak, and its negative impact quickly evolved. At its peak, the pandemic reduced total household consumption spending by 22.8% and labor income by 5.9% in April. Probability of full-time work also went down by 1.2 pp and 6.0 pp in April and May, respectively, but employment and self-employment were only mildly affected. Our heterogeneity analysis indicates that the reduction in consumption spending was greater among those with higher net worth, while the decreases in labor market outcomes were greater among those with lower net worth. However, we find little evidence that those in worse health status experienced larger reductions in consumption spending and labor market outcomes. Reductions in consumption spending correlated with increased risk avoidance behavior, the nationwide partial lockdown, worsening economic outlook, and reduced income.

Is Cancer History Associated With Assets, Debt, and Net Worth in the United States?

Financial hardships experienced by cancer survivors have become a prominent public health issue in the United States. Few studies of financial hardship have assessed financial holdings, including assets, debts, and their values, associated with a cancer history. Using the 2008-2011 Medical Expenditure Panel Survey, we identified 1603 cancer survivors and 34 915 individuals age 18-64 years without a cancer history to assess associations between self-reported cancer history and assets, debts, and net worth. Distributions of self-reported asset and debt ownership, their values, and net worth were compared for adults with and without a cancer history with chi-square statistics. Multivariable ordered probit regression analysis was conducted to assess the association between cancer history and net worth using a two-sided Wald test. All analyses were stratified by age group (18-34, 35-44, 45-54, and 55-64 years). Statistical tests were two-sided. Among those age 45-54 years, cancer survivors had a lower proportion of home ownership than individuals without a cancer history (59.0% vs 67.1%, P = .0014) and were statistically significantly more likely to have negative net worth (≤-$3000) and less likely to have positive net worth (≥$3000). Cancer survivors were more likely to have debt than individuals without a cancer history, especially among those age 18-34 years (41.3% vs 27.1%, P < .001). Cancer history is associated with lower asset ownership, more debt, and lower net worth, especially in survivors age 45-54 years. Longitudinal studies of financial holdings will be important to inform development of interventions to reduce financial hardship.

Financial constraints and investment decisions of listed Indian manufacturing firms

BackgroundThe purpose of the study is to understand the role of cash flow sensitivity to investment as a measure of financial constraints among listed Indian manufacturing firms. It also analyses the role of tangibility in alleviating financial constraints. Further, the role of other financial factors in investment decisions is explored.MethodsThe study is conducted using the generalized method of moments (GMM) estimator on dynamic panel data for the period of (2009–2015) on 768 listed manufacturing firms.ResultsThe analysis finds that cash flow sensitivity is a valid measure of financial constraints in the Indian manufacturing sector. Results according to splitting criteria found that investment decisions of standalone firms are more sensitive to cash flow than group affiliated firms. Further, splitting the firms according to market capitalization and tangible net worth reveals a higher degree of cash flow sensitivity by firms with lower market capitalization and asset tangibility. The results for the effects of tangibility of assets on easing financial constraint were found significant only in the case of firms with low tangible net worth and medium market capitalization.ConclusionsThe study confirms cash flow sensitivity to investment as a valid measure of financial constraints. It will confirm pooling of internal funds by financially constrained firms to accept profitable investment opportunities in future. Further, it also reports that asset tangibility eases the financial constraints faced by firms.

Historical Overview of Black Suffering in Pittsburgh, Pennsylvania, USA: Depth of Contemporary Social Work Challenges

This article is an overview of how slavery created a contemporary psychological and emotional condition in Black Americans. As a case study, this manuscript reviews how black history shaped Pittsburgh, Pennsylvania in the United States of America (USA) to fair the worst for Black residents: low school graduation rates, income levels, homeownership, net worth, and available savings, high unemployment rates, high chronic disease mortality rates, and low life-expectancy.

PATTERNS OF DRIVING IN OLDER AMERICANS OVER 14 YEARS: FINDINGS FROM THE HEALTH AND RETIREMENT STUDY

The US population is aging and there are increasing numbers of older adults driving. Driving cessation has been associated with negative outcomes (e.g., depression, isolation, death). Qualitative research suggests driving status may change abruptly after an acute health event, change slowly over time, or not at all. In this study we analyzed 8 waves of data (1998–2012) from the Health and Retirement Study to determine patterns of driving status observed in older drivers (e.g., drive with no limits, limited driving, ceased driving, not driving due to death). First, we examined a sample aged 65–74 (N=11,114) and who drove with no limits at baseline (n=2,981). These respondents provide 2,981 unique raw sequences of driving status that changed over the eight waves without any gap in driving status (nonresponse or missing). Next, optimal matching and cluster analysis were conducted and seven patterns emerged. From these MNL results, the biggest differences were between those who continue to drive (cluster 1) vs. those cease driving sometime after the baseline (cluster 2–7). For example, those who were older, less educated, had lower net worth, had more cognitive deficit/emotional problems, or poor health were more likely to fall into any of the clusters that represent driving cessation. A deeper, empirical understanding of the complex process of driving, limiting driving, or ceasing driving will suggest interventions that may promote safe mobility. Research is underway to explore what other processes (instead of baseline characteristics) may be more important for people to limit driving or to gradually cease driving.

An Impact of Housing Finance Regulation on Housing Consumption

가구의 주택소유에 있어 직면하게 될 자산제약을 완화하기 위한 수단으로 주택금융이 효율적으로 활용되고 있으나, 주택금융규제를 강화할 경우 소득과 보유자산, 그리고 신용도가 낮은 가구들은 차용제약에 노출될 가능성이 크다. 따라서 정부가 주택금융규제에 대한 강화 또는 완화 여부를 결정하기에 앞서 실수요자의 주거복지와 금융포용 확대의 관점에서 이러한 취약계층에 대한 미칠 영향에 대한 검토는 매우 중요하게 다루어져야 할 것이다. 이러한 배경에서 본 연구는 주택금융규제가 가구의 주택소비에 미칠 영향에 대해 소득 및 순자산 분위별 모의실험을 진행하였다. 모의실험 결과는 다음과 같이 요약된다. 가구의 주택소비규모에는 소득제약에 비해 보유순자산에 의한 제약이 더 크게 작용하는 것으로 나타났으며, 이 경우 주택금융규제로 인한 가구의 주택소비규모의 제약은 축적된 순자산이 적은 가구에서 보다 크게 나타났다. 또한 서민ㆍ실수요자의 주거안정을 위한 효과는 주택금융규제를 완화할 경우 더 크게 나타났다. 마지막으로 주택금융규제 강화로 인한 투자수요 제약의 효과는 상대적으로 적은 것으로 나타났다. 따라서 서민주거안정이라는 정책적 목적을 달성하기 위해서는 현재 일률적으로 적용되고 있는 주택금융규제의 강화 또는 완화 여부를 결정하기에 앞서 소득제약ㆍ자산제약ㆍ신용제약 가구 지원을 위한 보다 구체적인 논의가 선행되어야 한다. 또한 실수요자의 주거복지에 대해 주택소유에만 초점을 둔 정책 이외에 월세 또는 전세 수요를 충족할 수 있는 방안에 대한 검토도 필요할 것으로 판단된다.Housing finance is being used effectively as a means to mitigate the asset constraints that will be encountered in the housing ownership. If household financing regulations are strengthened, households with low-income, low-assets and low-credit ratings are likely to be exposed to borrowing restrictions. Therefore, before deciding whether to strengthen or mitigate housing finance regulations, the government should carefully consider the impact on the actual demander’s housing welfare and low-income and low-net worth class households. In this context, this study simulated the effect of housing finance regulation on housing consumption by income and net worth class. The simulation results are as follows. Housing consumption is more constrained by net worth constraints than by income constraints. And the restriction of housing consumption by the housing finance regulation was larger in households with a small net worth. In addition, when housing finance regulations are relaxed, showed a greater policy effect to the actual demanders housing stability. Finally, the effect of constraints on investment demand due to tightening of housing finance regulations is relatively small. Therefore, In order to achieve the policy goal of stable housing for the general public, it is necessary to prepare alternative measures for income limitation, asset limitation, and credit restriction before deciding whether to Strengthen or mitigate housing finance regulations. In addition to policies that focus on housing ownership for housing welfare, it will also be necessary to consider ways to meet Jeonse and Monthly-Rent demand.

Student debt and hardship: Evidence from a large sample of low- and moderate-income households

Student debt has risen in recent years as higher education costs have shifted to students and their families, particularly those with low-to-moderate incomes (LMI). Though a college degree continues to convey higher earnings, those who finance their degrees have lower net worth and greater financial difficulties than persons without student debt. We assess the relationship between student debt and material and health care hardship among a large sample (n=5558) of LMI tax filers, using propensity score analysis to adjust for self-selection into student debt status and loan amount and monthly payment quartiles. We find that participants with student debt have a higher likelihood of hardship. Loan amounts only partially predict hardship, and borrowers making current loan payments are at lower odds for hardship than non-payers. We also find that among those with student debt, non-payers and those without college degrees have much greater social and economic disadvantages.