Changes in the Wealth of American Households during the 2007-2009 Financial Crisis in the U.S

• Main Authors: Aboohamidi, Abbas, Chidmi, Benaissa
• Format: Conference Proceeding
• Language: English
• Published: 2015
• Edition: 330
• Subjects: Consumer/Household Economics; household; SCF; Wealth
• DOI: 10.22004/ag.econ.205451

Abstract This paper uses the wealth information and various demographic variables from the Survey of Consumer Finance 2007-2009 panel (SCF) data to investigate the factors and forces that may have caused the changes in the wealth of U.S households during the 2007-2009 financial crisis. This include some, hypothesized to be the main determinants of the U.S households wealth, taking into account the sector of activities in which the head of household operates, other potential factors and their interaction such as variation in characteristics of head of household, family, age, education, and others that are included in the model. More specifically, this paper deviates from previous studies by hypothesizing that the effect of age, for example, on wealth will depend on whether the person is a farmer, a construction worker or a banker. In addition, this analysis helps us whether to confirm the claim made by some researchers, using 2007-2009 SCF panel, that the decreasing house prices and asset values are the main causes of the decreasing wealth for many families during the financial crisis or to reject it.