Household Wealth in the Euro Area: The Importance of Intergenerational Transfers, Homeownership and House Price Dynamics

51 Pages Posted: 12 Jul 2014

See all articles by Thomas Mathae

Thomas Mathae

Banque de France

Alessandro Porpiglia

Banque Centrale du Luxembourg

Michael Ziegelmeyer

Banque centrale du Luxembourg; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Social Law and Social Policy

Date Written: April 30, 2014

Abstract

Results from the Eurosystem Household Finance and Consumption Survey reveal substantial variation in household net wealth across euro area countries that await explanation. This paper focuses on three main factors for the wealth accumulation process, i) homeownership, ii) housing value appreciation and iii) intergenerational transfers. We show that these three factors, in addition to the common household and demographic factors, are relevant for the net wealth accumulation process in all euro area countries, and moreover that, using various decomposition techniques, differences therein, in particular in homeownership rates and house price dynamics, are important for explaining wealth differences across euro area countries.

Keywords: household wealth, homeownership, property prices, inheritance, euro area

JEL Classification: D31, E21, O52, C42

Suggested Citation

Mathae, Thomas and Porpiglia, Alessandro and Ziegelmeyer, Michael Heinrich, Household Wealth in the Euro Area: The Importance of Intergenerational Transfers, Homeownership and House Price Dynamics (April 30, 2014). ECB Working Paper No. 1690. Available at SSRN: https://ssrn.com/abstract=2431311

Thomas Mathae (Contact Author)

Banque de France ( email )

Paris
France

Alessandro Porpiglia

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Michael Heinrich Ziegelmeyer

Banque centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Social Law and Social Policy ( email )

Amalienstra├če 33
M├╝nchen, 80799
Germany

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