Simone Pesce
@simonepesce.bsky.social
Econ PhD at @bostoncollege.bsky.social. Economist at @centralbankireland.bsky.social.
Website: https://www.simone-pesce.com/
Views are my own.
Website: https://www.simone-pesce.com/
Views are my own.
Full paper here: simopsc.github.io/simonepesce/...
Comments & feedback are more than welcome!
Comments & feedback are more than welcome!
simopsc.github.io
March 21, 2025 at 11:59 AM
Full paper here: simopsc.github.io/simonepesce/...
Comments & feedback are more than welcome!
Comments & feedback are more than welcome!
🔹 Overall, our research highlights the importance of considering refinancing behavior in economic models. We show that how households manage their liquidity and balance sheets is key to understanding the impact of both monetary and fiscal policies.
March 21, 2025 at 11:59 AM
🔹 Overall, our research highlights the importance of considering refinancing behavior in economic models. We show that how households manage their liquidity and balance sheets is key to understanding the impact of both monetary and fiscal policies.
🔹 We also build a partial equilibrium life-cycle model to test fiscal policy ideas. Our simulations show that targeting cash transfers to households that haven’t refinanced—who tend to have higher MPCs—could cut fiscal costs by 4–12%.
March 21, 2025 at 11:59 AM
🔹 We also build a partial equilibrium life-cycle model to test fiscal policy ideas. Our simulations show that targeting cash transfers to households that haven’t refinanced—who tend to have higher MPCs—could cut fiscal costs by 4–12%.
🔹 One major finding is that in the year of refinancing, MPC drops by about 50% compared to before refinancing. By turning home equity into cash, households can better smooth their consumption when income shocks occur.
March 21, 2025 at 11:59 AM
🔹 One major finding is that in the year of refinancing, MPC drops by about 50% compared to before refinancing. By turning home equity into cash, households can better smooth their consumption when income shocks occur.
🔹 In this paper, we examine how mortgage refinancing affects households’ MPC and its implications for fiscal policy. Using U.S. household data, we find that refinancing cuts MPC significantly, especially for liquidity‐constrained households.
March 21, 2025 at 11:59 AM
🔹 In this paper, we examine how mortgage refinancing affects households’ MPC and its implications for fiscal policy. Using U.S. household data, we find that refinancing cuts MPC significantly, especially for liquidity‐constrained households.