Donald Haurin - Academia.edu (original) (raw)

Papers by Donald Haurin

National Tax Journal, Feb 4, 2022

This study is based on a field experiment designed to increase the salience of property tax and i... more This study is based on a field experiment designed to increase the salience of property tax and insurance payments among a particularly vulnerable population, older adults who took out a reverse mortgage. Homeowners who were randomly assigned to receive mailed letters reminding them about payment obligations missed subsequent payments at one-third lower rates relative to homeowners who were not assigned reminder letters. Those assigned to the reminder letter treatment were also significantly less likely to carry large default balances at the end of the study period, reducing their risk of foreclosure.

Journal of Housing Economics, Mar 1, 1998

... We use a parametric hazard rate model for this estimation. By projecting future values of the... more ... We use a parametric hazard rate model for this estimation. By projecting future values of the other components of user cost, we complete the measurement of a multiperiod version. Results from estimating housing demands show that our multiperiod transaction-adjusted user ...

The journal of the economics of ageing, Dec 1, 2021

This study investigates the use of housing wealth as a resource to increase economic security amo... more This study investigates the use of housing wealth as a resource to increase economic security among older adults.The primary source of wealth for many older adults, particularly for those with lower incomes who rely entirely on Social Security for their incomes, is equity in the home. This project investigates the use of housing wealth as a resource to increase economic security for older adults. We focus on an indicator of severe economic insecurity—taking less medication than prescribed because of cost. We investigate the relationship between housing wealth and cost-related noncompliance (CRN) with medication using restricted data from the 1998 through 2016 waves of the U.S. Health and Retirement Study, that includes geographic identifies. This project makes several novel contributions. First, we advance the understanding of the role of home equity for economic security and CRN by measuring the liquidation of housing wealth through mortgage borrowing as an endogenous choice. Understanding the causal mechanisms is critical to informing federal policy. Second, the study is among the first to estimate effects of housing wealth for those with the onset of a new disease for whom financial risks may be most acute. The test here is whether housing wealth allows older adults to buffer the financial risks associated with a health shock. Third, this study explores heterogeneous effects for those who are most vulnerable to economic insecurity. CRN is higher among lower-income older adults, and housing wealth is the largest source of wealth for this group. The proposed research will directly inform the Social Security Administration’s efforts to provide financial protection and reduce poverty for financially vulnerable Americans.Center for Financial Security, Retirement and Disability Research Consortium, U.S. Social Security Administration

Social Science Research Network, 2019

22nd Annual European Real Estate Society Conference, 2015

Social Science Research Network, 2012

Social Science Research Network, 2019

One of the risks to financial security among older homeowners is the failure to pay property taxe... more One of the risks to financial security among older homeowners is the failure to pay property taxes. Tax bills are often due in lump sums, and if the homeowner has a failure of prospective memory, they may neglect to make a payment. This field study tests if reminders to plan ahead and to pay property taxes are effective with an especially liquidity constrained population, older adults who take out a reverse mortgage to extract home equity. Letters mailed to remind homeowners about their obligations reduce the rate of defaults on property taxes, as well as increase timely payments for homeowners’ insurance premiums. These effects are concentrated among subgroups of homeowners who are likely to be the most vulnerable, such as homeowners with no liquid assets, and single households, but also those with more capacity to take actions, such as relatively younger and healthier homeowners.

Social Science Research Network, 2016

Social Science Research Network, 2014

Social Science Research Network, 2014

Real Estate Economics, May 8, 2017

Journal of European Real Estate Research, Nov 6, 2017

PurposeThis paper links the literatures on the life-cycle hypothesis, homeownership, home equity ... more PurposeThis paper links the literatures on the life-cycle hypothesis, homeownership, home equity and pensions. Empirically, the focus is on the EU and USA. The paper aims to explore the extent that seniors extract their home equity and discuss the financial instruments available for equity extraction.Design/methodology/approachThe study uses data from the EU and USA to determine homeownership rates, house values and mortgage debt. With these values, the amount of seniors’ home equity is measured for each country. The usage of home equity extraction methods is reported and factors limiting their use are identified.FindingsSeniors’ home equity is a substantial share of their total wealth. Estimates for 2013 are that their home equity equals about €5tn in the USA and over €8tn in large EU countries. The authors find that only a small share of seniors extracts their home equity. While there are supply side constraints in many countries, the evidence suggests that the cause of low extraction rates is the lack of demand. Various reasons for the lack of demand are discussed.Practical implicationsThe increasing share of seniors in most countries’ population suggests that there will be increasing pressure on public pension systems. One among many options to address this issue is to impose a wealth test for eligibility, where wealth includes home equity. This study suggests that although home equity is substantial for many seniors, they are reluctant to access the funds.Originality/valueThe paper highlights the importance of home equity in the EU and USA and the factors that affect the primary methods of extraction.

Journal of Housing Economics, Dec 1, 1996

Journal of Urban Economics, Mar 1, 1983

National Tax Journal, Feb 4, 2022

This study is based on a field experiment designed to increase the salience of property tax and i... more This study is based on a field experiment designed to increase the salience of property tax and insurance payments among a particularly vulnerable population, older adults who took out a reverse mortgage. Homeowners who were randomly assigned to receive mailed letters reminding them about payment obligations missed subsequent payments at one-third lower rates relative to homeowners who were not assigned reminder letters. Those assigned to the reminder letter treatment were also significantly less likely to carry large default balances at the end of the study period, reducing their risk of foreclosure.

Journal of Housing Economics, Mar 1, 1998

... We use a parametric hazard rate model for this estimation. By projecting future values of the... more ... We use a parametric hazard rate model for this estimation. By projecting future values of the other components of user cost, we complete the measurement of a multiperiod version. Results from estimating housing demands show that our multiperiod transaction-adjusted user ...

The journal of the economics of ageing, Dec 1, 2021

This study investigates the use of housing wealth as a resource to increase economic security amo... more This study investigates the use of housing wealth as a resource to increase economic security among older adults.The primary source of wealth for many older adults, particularly for those with lower incomes who rely entirely on Social Security for their incomes, is equity in the home. This project investigates the use of housing wealth as a resource to increase economic security for older adults. We focus on an indicator of severe economic insecurity—taking less medication than prescribed because of cost. We investigate the relationship between housing wealth and cost-related noncompliance (CRN) with medication using restricted data from the 1998 through 2016 waves of the U.S. Health and Retirement Study, that includes geographic identifies. This project makes several novel contributions. First, we advance the understanding of the role of home equity for economic security and CRN by measuring the liquidation of housing wealth through mortgage borrowing as an endogenous choice. Understanding the causal mechanisms is critical to informing federal policy. Second, the study is among the first to estimate effects of housing wealth for those with the onset of a new disease for whom financial risks may be most acute. The test here is whether housing wealth allows older adults to buffer the financial risks associated with a health shock. Third, this study explores heterogeneous effects for those who are most vulnerable to economic insecurity. CRN is higher among lower-income older adults, and housing wealth is the largest source of wealth for this group. The proposed research will directly inform the Social Security Administration’s efforts to provide financial protection and reduce poverty for financially vulnerable Americans.Center for Financial Security, Retirement and Disability Research Consortium, U.S. Social Security Administration

Social Science Research Network, 2019

22nd Annual European Real Estate Society Conference, 2015

Social Science Research Network, 2012

Social Science Research Network, 2019

One of the risks to financial security among older homeowners is the failure to pay property taxe... more One of the risks to financial security among older homeowners is the failure to pay property taxes. Tax bills are often due in lump sums, and if the homeowner has a failure of prospective memory, they may neglect to make a payment. This field study tests if reminders to plan ahead and to pay property taxes are effective with an especially liquidity constrained population, older adults who take out a reverse mortgage to extract home equity. Letters mailed to remind homeowners about their obligations reduce the rate of defaults on property taxes, as well as increase timely payments for homeowners’ insurance premiums. These effects are concentrated among subgroups of homeowners who are likely to be the most vulnerable, such as homeowners with no liquid assets, and single households, but also those with more capacity to take actions, such as relatively younger and healthier homeowners.

Social Science Research Network, 2016

Social Science Research Network, 2014

Social Science Research Network, 2014

Real Estate Economics, May 8, 2017

Journal of European Real Estate Research, Nov 6, 2017

PurposeThis paper links the literatures on the life-cycle hypothesis, homeownership, home equity ... more PurposeThis paper links the literatures on the life-cycle hypothesis, homeownership, home equity and pensions. Empirically, the focus is on the EU and USA. The paper aims to explore the extent that seniors extract their home equity and discuss the financial instruments available for equity extraction.Design/methodology/approachThe study uses data from the EU and USA to determine homeownership rates, house values and mortgage debt. With these values, the amount of seniors’ home equity is measured for each country. The usage of home equity extraction methods is reported and factors limiting their use are identified.FindingsSeniors’ home equity is a substantial share of their total wealth. Estimates for 2013 are that their home equity equals about €5tn in the USA and over €8tn in large EU countries. The authors find that only a small share of seniors extracts their home equity. While there are supply side constraints in many countries, the evidence suggests that the cause of low extraction rates is the lack of demand. Various reasons for the lack of demand are discussed.Practical implicationsThe increasing share of seniors in most countries’ population suggests that there will be increasing pressure on public pension systems. One among many options to address this issue is to impose a wealth test for eligibility, where wealth includes home equity. This study suggests that although home equity is substantial for many seniors, they are reluctant to access the funds.Originality/valueThe paper highlights the importance of home equity in the EU and USA and the factors that affect the primary methods of extraction.

Journal of Housing Economics, Dec 1, 1996

Journal of Urban Economics, Mar 1, 1983