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

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

Tullio Jappelli

University of Naples Federico II - Department of Economics and Statistics; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); Center for Studies in Economics and Finance - CSEF; CSEF - University of Naples Federico II - Centre 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). Available at SSRN: https://ssrn.com/abstract=264399

Maria Concetta Chiuri (Contact Author)

CSEF - University of Naples Federico II ( 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

CSEF - University of Naples Federico II - Centre for Studies in Economics and Finance (CSEF) ( email )

Via Cintia
Complesso Monte S. Angelo
Naples, Naples 80126
Italy

Tullio Jappelli

University of Naples Federico II - Department of Economics and Statistics ( 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 the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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

Center for Studies in Economics and Finance - CSEF ( email )

Via Cintia - Monte S. Angelo
Napoli, 80126
Italy

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

CSEF - University of Naples Federico II - Centre for Studies in Economics and Finance (CSEF) ( email )

Via Cintia
Complesso Monte S. Angelo
Naples, Naples 80126
Italy

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

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