(UM10-09) - Mortgage Distress of the Elderly: How Strong are Family Ties?
Frank Stafford and Elena Gouskova
The recent financial crisis finds many households, in particular, older households, in a precarious situation. Debt, including mortgage debt, is now much more common for the elderly. This proposal would use Panel Study of Income Dynamics (PSID) data to examine the recent vulnerability of elderly households to housing price declines. It would also study the correlation of parent and adult-child financial distress, and it would examine whether (implicit) insurance possibilities within family lines have decreased over time.