Table 1:
Mean Household Spending across States with Different Degrees of Housing Market Decline (Home Owners)
| Non-Recession | Recession | |||||
|---|---|---|---|---|---|---|
| 1st Ter | 2nd Ter | 3rd Ter | 1st Ter | 2nd Ter | 3rd Ter | |
| t | 44,724 (600) | 45,808 (622) | 46,794 (609) | 42,196 (934) | 47,283 (1,116) | 46,034 (954) |
| t + 1 | 42,373 (624) | 44,361 (646) | 44,876 (643) | 40,077 (858) | 43,719 (1,037) | 40,488 (879) |
| % Δ: (t + 1) - (t) | −5.26 (1.18) | −3.16 (1.14) | −4.10 (1.17) | −5.02 (1.67) | −7.54 (1.82) | −12.05 (1.55) |
| Δ: Recession - Non-Recession | 0.24 (2.05) | −4.38 (2.15) | −7.95 (1.94) | |||
| Δ(2nd) – Δ(1st) | −4.62 (2.96) | |||||
| Δ(3nd) – Δ(1st) | −8.19 (2.82) | |||||
| Δ(3rd) – Δ(2nd) | −3.57 (2.89) | |||||
Terciles are defined at the state level: the first and third terciles comprise the 17 states with the smallest and largest house price decline from 2007q4 to 2009q2, respectively. Delta Method standard errors in parentheses. Values are in 2011 dollars. In each survey wave we drop households with spending values in the top 1% or bottom 1% of the sample. For non-recession times, t = 2003; 2005; 2009 and t + 1 = 2005; 2007; 2011. For recession times t = 2007 and t + 1 = 2009. The computations only include households observed in both time t and t + 1.