Table 6:

Estimation results correcting for local labor market effects

	(1) Full sample	(2) Full sample	(3) No largea changes UR	(4) Full sample	(5) Full sample	(6) No largeb changes HPI	(7) Full sample
Second-stage: Δln(hint)
$\mathrm{\Delta }ln\left(c_{imt}^S\right)$	−0.68 *	−0.68*	−0.72*	−0.67 *	−0.68*	−0.75*	−0.68*
	(0.39)	(0.39)	(0.43)	(0.38)	(0.39)	(0.46)	(0.39)
ΔURdc	0.02 (0.04)						−0.04 (0.05)
Δ(URd − UR)		0.05 (0.05)
ΔHPId(/100)d				−0.33** (0.16)			−0.41** (0.21)
Δ(HPId − HPI)(/100)					−0.32* (0.17)
First-stage: $\mathrm{\Delta }ln\left(c_{imt}^s\right)$
DGRΔln(Wit)	0.13**	0.13**	0.13**	0.14**	0.13**	0.13**	0.13**
	(0.06)	(0.06)	(0.06)	(0.06)	(0.06)	(0.06)	(0.06)
H0: βn2 = −1	[0.41]	[0.42]	[0.52]	[0.39]	[0.40]	[0.59]	[0.40]
Observations (N × T)	2,491	2,491	1,832	2,491	2,491	1,890	2,491
F-statistic	5.32	5.33	4.76	5.39	5.36	4.41	5.36

Notes: Heteroskedasticity and autocorrelation robust SE’s in parentheses,

^*10% level,

^**5%,

^***1%. β_n2 = − 1 tests perfect elasticity. P-values in square brackets. 2011 US dollars.

^a,bDeleting the top 25% observations with respect to division-specific changes in unemployment rates and HPI respectively.

^c,dUR_d and HPI_d are the regional unemployment rate and House Price Index in census division d respectively.