Item Type | Journal paper |
Abstract | We study the impact of borrowing constraints on home ownership and housing demand by comparing the tenure choice and housing quality of consumers who receive intra‐family wealth transfers to those that do not. Our analysis is based on household‐level panel data providing information on the receipt of wealth transfers, changes in tenure status as well as changes in the size and quality of housing. On average we find that the receipt of a wealth transfer increases the propensity of consumers to transition from renters to home‐owners by 6–8 percentage points (35% of the sample mean). Additional analyses suggest that this effect is unlikely to be driven by wealth effects and can thus be attributed to the relaxation of borrowing constraints. By contrast, wealth transfers do not increase the likelihood that existing homeowners “trade‐up” to larger homes in better locations. |
Authors | Blickle, Kristian & Brown, Martin |
Journal or Publication Title | Journal of Money, Credit and Banking |
Language | English |
Keywords | Borrowing constraints, wealth transfers, home ownership,macroprudential policy. |
Subjects | business studies economics finance |
HSG Classification | contribution to scientific community |
HSG Profile Area | SOF - System-wide Risk in the Financial System |
Refereed | Yes |
Date | March 2019 |
Publisher | Wiley Periodicals, Inc. |
Place of Publication | Ohio State University |
Volume | Vol. 51, Nos. 2-3, |
Page Range | 539-580 |
Number of Pages | 42 |
Publisher DOI | https://doi.org/10.1111/jmcb.12566 |
Official URL | http://dx.doi.org/10.1111/jmcb.12566 |
Contact Email Address | martin.brown@unisg.ch |
Depositing User | Beatrix Kobelt-Glock |
Date Deposited | 29 Jun 2016 10:57 |
Last Modified | 20 Jul 2022 17:28 |
URI: | https://www.alexandria.unisg.ch/publications/248631 |
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CitationBlickle, Kristian & Brown, Martin (2019) Borrowing Constraints, Home Ownership and Housing Choice: Evidence from Intra‐Family Wealth Transfers. Journal of Money, Credit and Banking, Vol. 51, Nos. 2-3, 539-580. Statisticshttps://www.alexandria.unisg.ch/id/eprint/248631
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