Now as an @ecb.europa.eu working paper:
www.ecb.europa.eu/pub/pdf/scpw...

Full paper here: simopsc.github.io/simonepesce/...
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.

🔹 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.

🔹 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.

Excited to share our new working paper (w/ Liang Zhang) on mortgage refinancing and its impact on households’ marginal propensity to consume. Here is a short summary:

Happy to announce the first @bostoncollege.bsky.social Econ Ph.D. Workshop, please send your best paper by 2 March 2025!

Call for papers here: sites.google.com/view/bcphdco...

🚨Call for Papers🚨

The next SED meeting will be held June 26-28, 2025, in Copenhagen!

Submit your paper here: editorialexpress.com/cgi-bin/conf...
before Feb 15

Julieta Caunedo and I are the Program Chairs

New paper: benjaminmoll.com/challenge/