Homeowner Renovation and Repair: The Decision to Hire Someone Else to Do the Project

Bogdon, Amy S.

doi:10.1006/jhec.1996.0017

Cited by 35 publications

(34 citation statements)

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“…Consistent with Becker's (1965) theory of home production, households with higher income and more education are less likely to provide their own labor to a project. Bogdon (1996) finds a similar result using AHS data. In addition, older household heads are more likely to rely on contractors.…”

Section: Estimation Resultssupporting

confidence: 57%

Negative Equity and Housing Investment

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. An important aspect of housing investments is that they are tied to the house. Households in negative equity may behave more like renters than owners since any increases in the house value resulting from housing investments may go to the lender and not to the household. Q4, the average amount was estimated to be over $70,000. Terms of use: Documents inWe quantify that negative equity has a significant adverse impact on housing investments.We use data from the Consumer Expenditure Survey (CES) since it provides detailed data on a wide range of housing maintenance and improvements. In addition, the CES contains detailed mortgage data covering first liens and any second liens as well as a self-reported house value. This information is required for determining whether the household perceives that it is in negative equity. Using the reported expenditures, households in our estimation sample on average invest $2,241 per year (0.95% of the self-reported house value) on maintenance and improvements. Adjusting for the labor supplied by the household to investment projects increases this average annual investment to $3,152(1.4% of the self-reported house value In the next section, we discuss in more detail the reasons why negative equity may impact a household's housing investment decisions, and we review the limited research to date on this issue.In the data and methodology section, we detail how we generate our estimation sample. In addition,we highlight three issues that are important for the empirical work. We then present the main findings as well as some robustness checks. In the conclusion we discuss some broader implications of the findings and some policy implications. Motivation and literature review

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Section: Estimation Resultssupporting

confidence: 57%

Negative Equity and Housing Investment

2013

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“…It might be expected, therefore, that individuals with lesser incomes are more likely to engage in DIY activities than individuals with higher incomes. However, where some studies find a positive relationship between income and DIY activities (Bogdon 1996;Bush et al 1987), others find a negative relationship (Pollakowski 1988;Schwartzlander and Bowers 1989;Williams 2004). The conflicting findings suggest that the economic need deriving from income status may be an insufficient and overly simplistic view of how consumers weigh the economics of the DIY decision.…”

Section: Relative Economic Benefitsmentioning

confidence: 87%

Understanding the do-it-yourself consumer: DIY motivations and outcomes

Wolf

McQuitty

2011

AMS Rev

150

105

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Do-it-yourself (DIY) is an increasingly popular consumer behavior, but little is known about this large consumer segment. We undertake a depth interview study and review diverse literatures to develop a conceptual model of DIY behavior that explores the reasons why consumers DIY and the benefits they receive. The purpose of the model is to improve our understanding of a consumer segment that, in many ways, behaves differently from typical consumers. Research propositions are derived and discussions of implications and ideas for future research follow.

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“…However, in this category of attributes, the relationship between the probability of adoption of such equipment and household income has no unanimity among economists. If this relationship is debatable for some studies (see Grösche and Vance [17], it is significant for others, with a divergence concerning the sign of his influence (See [18,19] for contradictory results).…”

Section: Page 3 Of 24mentioning

confidence: 93%