Differences in Perceptions of the Housing Cost Burden Among European Countries

28 Pages Posted: 20 Sep 2015

See all articles by Marco Brandolini

Marco Brandolini

Prometeia

Federica Coroneo

Prometeia

Elena Giarda

Dipartimento di Analisi e Ricerca Economica, Prometeia; Università degli studi di Modena e Reggio Emilia (UNIMORE) - Center for Research in Banking and Finance (CEFIN); Fondazione Rodolfo Debenedetti

Cristiana Moriconi

Prometeia

Sarah Grace See

Department of Economics, Econometrics and Finance

Date Written: March 28, 2013

Abstract

In this paper we perform a comparative analysis of financial hardship in five countries – France, Germany, Italy, Spain, and the UK – through the self-reported perception of the housing cost burden. We use EU-SILC data for 2005 to 2010. Wide differences emerge between Germany, France and the UK on the one hand, and Italy and Spain on the other. Estimation of the housing cost burden by means of logit models allows us to relate the probability of a high burden to both micro and macro-economic variables. Among the former, age reveals the existence of life-cycle effects. The latter show that GDP growth and higher consumer confidence contribute to reducing the probability of a high burden, whereas high levels of unemployment and inequality contribute to its increase. At country level, we observe differences in the size of the impact of the explanatory variables on the probability of perceiving a high burden, especially for covariates such as age, homeownership status and education.

Keywords: housing costs burden, perceived financial hardship, binary choice models, EU-SILC

JEL Classification: D12, D14, C25

Suggested Citation

Brandolini, Marco and Coroneo, Federica and Giarda, Elena and Moriconi, Cristiana and See, Sarah Grace, Differences in Perceptions of the Housing Cost Burden Among European Countries (March 28, 2013). Available at SSRN: https://ssrn.com/abstract=2662459 or http://dx.doi.org/10.2139/ssrn.2662459

Marco Brandolini

Prometeia ( email )

Italy

Federica Coroneo

Prometeia ( email )

Italy

Elena Giarda (Contact Author)

Dipartimento di Analisi e Ricerca Economica, Prometeia ( email )

Via G. Marconi 43
Bologna, 40122
Italy
+390516480911 (Phone)
+39051220753 (Fax)

HOME PAGE: http://https://www.prometeia.it/en/research-insights

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Center for Research in Banking and Finance (CEFIN) ( email )

via Berengario 51
Modena, modena I-41100
Italy

Fondazione Rodolfo Debenedetti ( email )

Via Roentgen 1,
Room 5.C1-11
Milan, Milano 20136
Italy

Cristiana Moriconi

Prometeia ( email )

Italy

Sarah Grace See

Department of Economics, Econometrics and Finance ( email )

Nettelbosje 2
Groningen, 9747 AE
Netherlands

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