Table 5:

Regressions of Changes in Spending by Degree of House Price Decline Separating Households with Low and High Leverage Dependent variable: change in log spending

	Debt-to-Income		Housing Leverage
	≤ Median	> Median	≤ Median	> Median
$\mathbb{I}(Recession=1)$	0.053 (0.039)	0.074** (0.032)	0.066* (0.034)	0.062* (0.036)
$\mathbb{I}(Tercile=2)$	0.072** (0.034)	0.041 (0.044)	0.043 (0.032)	0.080* (0.042)
$\mathbb{I}(Tercile=3)$	−0.003 (0.030)	0.031 (0.037)	−0.032 (0.030)	0.080** (0.036)
$$\begin{gathered} \mathbb{I}(Recession=1)\times \\ \mathbb{I}(Tercile=2) \end{gathered}$$	−0.014 (0.043)	−0.077** (0.038)	−0.025 (0.037)	−0.080* (0.044)
$$\begin{gathered} \mathbb{I}(Recession=1)\times \\ \mathbb{I}(Tercile=3) \end{gathered}$$	−0.046 (0.045)	−0.153** (0.035)	−0.057 (0.041)	−0.154** (0.041)
Hypothesis Testing:
$$\begin{gathered} \mathbb{I}(Recession=1)\times \\ \mathbb{I}(Tercile=2)= \\ \mathbb{I}(Recession=1)\times \\ \mathbb{I}(Tercile=3) \end{gathered}$$	F=1.16 p-val=0.29	F=5.87 p-val=0.02	F=0.74 p-val=0.39	F=3.50 p-val=0.07
N	4,014	4,966	4,755	4,088

States are grouped in terciles of the distribution of house price declines from 2007q4 to 2009q2 (1st tercile includes states with the smallest declines; 3rd tercile includes states with the largest declines). Standard errors clustered at the state level in parentheses. ***, ** and * indicate significance at the 1%, 5% and 10% level, respectively. In each survey wave we drop households with changes in log spending in the top 1% or bottom 1% of the sample. Other regressors as in Table 2.