RDP 2023-01: The Effect of Credit Constraints on Housing Prices: (Further) Evidence from a Survey Experiment Appendix D: Estimation Results for Full Set of Explanatory Variables

Tom Cusbert

January 2023

Table D1: Parameter Estimates from OLS Predictions Regressions
  ΔLn( WTP ) β WTP20% ω
Interest rate low −0.01 0.03* −0.04 −0.29***
Owner −0.14** 0.10*** 0.14 −0.00
Age −0.00** 0.00** 0.00 −0.00**
Total numeracy −0.01 0.00 0.03 −0.04
College 0.00 0.00 −0.02 −0.04
Male 0.01 −0.01 0.10 0.13**
Marginal income tax rate 0.00 −0.00 0.00 0.01
Property tax rate 0.07*** −0.04*** −0.01 0.16***
Risk averse 0.00 0.00 −0.05 −0.00
Risk loving −0.01 0.01 0.04 0.11
E(inc growth, 1 yr) −0.00 −0.00 −0.00 −0.00
E(HP growth, 1 yr) −0.00* 0.00 −0.00 −0.01**
Pr(move over next 3 yrs) 0.00 −0.00 0.00 0.00
Pr(buy|move) 0.00 −0.00 0.01*** 0.00***
Equity in (0, 50K] −0.09 0.05 0.44*** 0.05
Equity in (50K, 125K] −0.13** 0.07* 0.49*** −0.10
Equity in (125K, 200K] −0.10 0.05 0.37** −0.15
Equity of more than 200K −0.13** 0.07 0.31* −0.25*
Liquid savings of [5K, 30K) 0.02 −0.02 0.12 −0.00
Liquid savings of [30K, 100K) −0.07* 0.04* 0.22** 0.05
Liquid savings of [100K, 500K) −0.04 0.02 0.12 0.13
Liquid savings of 500K or more −0.01 0.01 0.35** 0.26**
Non-housing debt of [1K, 5K) −0.01 0.00 −0.14 −0.11
Non-housing debt of [5K, 30K) 0.01 −0.01 −0.02 −0.10
Non-housing debt of 30K or more 0.01 −0.01 −0.16* −0.14*
Credit score 680–719 −0.06 0.04 0.08 −0.15
Credit score 720–760 −0.08** 0.05* 0.18 −0.11
Credit score above 760 −0.08** 0.05** 0.13 −0.12
Income in (40K, 75K] −0.02 0.01 −0.06 −0.04
Income in (75K, 150K] −0.05 0.04 −0.01 −0.03
Income greater than 150K −0.10* 0.07* −0.05 −0.17
Constant 0.36*** 0.75*** −1.50*** 0.33
Observations 789 789 789 754
R2 0.217 0.212 0.227 0.179
RMSE 0.30 0.20 0.87 0.68

Note: ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively.

Sources: Author's calculations; Fuster and Zafar (2021)