Borrowing Constraints, Home Ownership and Housing Choice: Evidence from Intra‐Family Wealth Transfers
Journal
Journal of Money, Credit and Banking
Type
journal article
Date Issued
2019-03
Author(s)
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.
Abstract (De)
JEL codes: D14, D31, D91, G18
Language
English
Keywords
Borrowing constraints
wealth transfers
home ownership
macroprudential policy.
HSG Classification
contribution to scientific community
HSG Profile Area
SOF - System-wide Risk in the Financial System
Refereed
Yes
Publisher
Wiley Periodicals, Inc.
Publisher place
Ohio State University
Volume
Vol. 51, Nos. 2-3,
Start page
539
End page
580
Pages
42
Official URL
Subject(s)
Contact Email Address
martin.brown@unisg.ch
Eprints ID
248631
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BLICKLE_et_al-2019-Journal_of_Money,_Credit_and_Banking.pdf
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Format
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