Liquidity Constraints, Wealth Transfers and Home Ownership

Item Type Monograph (Working Paper)
Abstract

We study the impact of liquidity constraints on home ownership by comparing the tenure and housing choice of households who receive intra-family wealth transfers to those that do not. Our analysis is based on household-level panel data providing annual information on household characteristics, wealth transfers, tenure status as well as changes in the size and quality of housing. Our treatment effect estimates suggest that wealth transfers increase the propensity of households to transition to ownership by 15 to 20 percentage points. 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
Language English
Keywords Liquidity Constraints, Tenure Choice, Wealth Transfers, Macroprudential Policy
Subjects economics
finance
HSG Classification contribution to scientific community
Date September 2016
Publisher SoF - HSG
Place of Publication St. Gallen
Series Name School of Finance Working Paper Series
Volume 2016/18
Number of Pages 66
Contact Email Address martin.brown@unisg.ch
Depositing User Beatrix Kobelt-Glock
Date Deposited 12 Sep 2016 09:12
Last Modified 15 Sep 2016 10:16
URI: https://www.alexandria.unisg.ch/publications/249191

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Citation

Blickle, Kristian & Brown, Martin: Liquidity Constraints, Wealth Transfers and Home Ownership. School of Finance Working Paper Series, 2016,

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https://www.alexandria.unisg.ch/id/eprint/249191
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