Financial Market Imperfections and Home Ownership: A Comparative Study

38 Pages Posted: 26 Mar 2001

See all articles by Maria Concetta Chiuri

Maria Concetta Chiuri

University of Salerno - Centre for Studies in Economics and Finance (CSEF); Università degli Studi di Bari

Tullio Jappelli

University of Naples Federico II - Department of Economics; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); Center for Studies in Economics and Finance - CSEF

Date Written: March 2001

Abstract

We explore the determinants of the international pattern of home ownership using the Luxembourg Income Study (LIS), a collection of microeconomic data on fourteen OECD countries. In most, the cross-section is repeated over time and includes several demographic variables carefully matched between the different surveys. This allows us to construct a truly unique international dataset, merging data on more than 400,000 households with aggregate panel data on mortgage loans and down payment ratios. After controlling for demographic characteristics, country effects, cohort effects and calendar time effects, we find strong evidence that the availability of mortgage finance - as measured by outstanding mortgage loans and down payment ratios - affects the age-profile of home ownership, especially at the young end. The results have important implications for the debate on the relationship between saving and growth.

Keywords: Financial markets, home ownership

JEL Classification: G20

Suggested Citation

Chiuri, Maria Concetta and Jappelli, Tullio, Financial Market Imperfections and Home Ownership: A Comparative Study (March 2001). CEPR Discussion Paper No. 2717. Available at SSRN: https://ssrn.com/abstract=264399

Maria Concetta Chiuri (Contact Author)

University of Salerno - Centre for Studies in Economics and Finance (CSEF) ( email )

CSEF
84084 Fisciano, Salerno
Italy
+39 080 504 9340 (Phone)
+39 080 504 9149 (Fax)

Università degli Studi di Bari ( email )

Piazza Umberto I
70124 Bari, 70121
Italy

Tullio Jappelli

University of Naples Federico II - Department of Economics ( email )

Via Cintia - Monte S. Angelo
Napoli, 80126
Italy

HOME PAGE: http://www.csef.it/people/jappelli.htm

Centre for Economic Policy Research (CEPR)

London
United Kingdom

HOME PAGE: http://www.cepr.org/researchers/details/rschcontact.asp?IDENT=106354

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Center for Studies in Economics and Finance - CSEF

84084 Fisciano, Salerno
Italy
+39 089 963 165 (Phone)
+39 089 963 169 (Fax)

HOME PAGE: http://www.csef.it/people/jappelli.htm

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