Replication data for: Are Home Buyers Inattentive? Evidence from Capitalization of Energy Costs
- Myers, Erica
AbstractThis paper explores whether home buyers are attentive to energy costs. The cost-effectiveness of market-based pollution policies crucially depends on whether consumers are attentive to energy costs when purchasing energy-using durables. I exploit energy-cost variation from fuel-price changes in Massachusetts where there is significant overlap in the geographic and age distributions of oil-heated and gas-heated homes. The results strongly reject that home buyers are unresponsive to energy costs under a wide range of consumption and discount-rate assumptions. Furthermore, my preferred specification is consistent with full capitalization of fuel expenditures at discount rates similar to mortgage interest rates.
Is supplement to
DOI: 10.1257/pol.20170481 (Text)
Myers, Erica. “Are Home Buyers Inattentive? Evidence from Capitalization of Energy Costs.” American Economic Journal: Economic Policy 11, no. 2 (May 2019): 165–88. https://doi.org/10.1257/pol.20170481.
- ID: 10.1257/pol.20170481 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07