The following is an excerpt from an April 21 story at CNNMoney.com. William Miles, associate professor of economics at Wichita State University, contributed to the article.
Where's the wealth effect?
Apr 21, 2011 12:00 AM | Print
Before the collapse of the housing market in 2008, homeowners, particularly younger ones, commonly borrowed against their houses and spent the extra cash. But the idea of homeownership as an investment vehicle has been eroding, as millions find themselves stuck with mortgages worth more than the value of their homes.
"There's a question going forward if people are going to treat houses like piggy banks again," says William Miles, economics professor at Wichita State University, who studied the wealth effect. "It is perhaps questionable we will see as large a housing effect than in the past."
Koch Global Trading Center officially dedicated
Rhatigan Renewal revives campus life
WSU dedicates building named for former president
Innovative splint developed by WSU researchers
WSU expansion will support job growth, innovation
Wichita State Musical Theater presents 'The Spitfire Grill'
Economic Outlook Conference, Oct. 9
History Department special presentation
Workshop to prepare students for ACT
Nursing student workshop to be held at WSU
WSU hosting 'Writing Now, Reading Now' series
WSU to host ACT Math Workshop
David Cabela to speak at WSU forum
Constitution Day activity at WSU
The Elliott School of Communication turns 25
Kansas Council for Economic Education receives grant
Ray to discuss photography at reception
Students, community welcome at WSU outdoor movie
AQR holiday travel forecast: Book early
CEDBR now offers indicators in optimal format
Students feel at home in Shocker Hall
Tree planting honors WSU's KBOR anniversary
WSU School of Nursing one of 100 schools chosen
Innovation helps WSU School of Nursing reach students