Date: Mar.15th,2019

Time: 12:00-13:30

Venue: Room 418, School of Economics, Yuquan Campus

Speaker: HUANG Naqun

[Speaker Intro]

HUANG Naqun, Assistant Professor, Institute of Urban Development, Nanjing Audit University

[Abstract]

We examine the extent to which changes in house prices affect when eligible individuals start to receive Social Security Retirement Income, which determines monthly benefits received through the program. Since changes in house prices and the claiming of Social Security are likely to be correlated with unobserved local demand shocks, we employ an instrumental variables strategy. Our instrument for the change in house prices is the land supply elasticity of an MSA interacted with changes in the national house price index. Using data from the Health and Retirement Survey, we find that the elderly delay Social Security claiming when house prices increase during a boom period, but not during a bust. Our findings also suggest that financially constrained households are more likely to delay claiming Social Security if house prices appreciate, and they do so by retaining their current residences but increasing the amount of their home loans.