Abstract

https://ssrn.com/abstract=2785741
 


 



Identifying the Benefits from Home Ownership: A Swedish Experiment


Paolo Sodini


Stockholm School of Economics - Department of Finance

Stijn Van Nieuwerburgh


New York University Stern School of Business, Department of Finance; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Roine Vestman


Stockholm University - Department of Economics; Swedish House of Finance

Ulf von Lilienfeld‐Toal


Universite du Luxembourg

November 21, 2016

Swedish House of Finance Research Paper No. 16-11
Paris December 2016 Finance Meeting EUROFIDAI - AFFI

Abstract:     
This paper studies the economic benefits of home ownership. Exploiting a quasi-experiment surrounding privatization decisions of municipally-owned apartment buildings, we obtain random variation in home ownership for otherwise similar buildings with similar tenants. We link the tenants to their tax records to obtain information on demographics, income, mobility patterns, housing wealth, financial wealth, and debt. These data allow us to construct high-quality measures of consumption expenditures. Home ownership causes households to move up the housing ladder, work harder, and save more. Consumption increases out of housing wealth are concentrated among the home owners who sell subsequent to privatization and among those who receive negative income shocks, evidencing a collateral effect.

Number of Pages in PDF File: 82

Keywords: home ownership, housing wealth, marginal propensity to consume out of housing wealth, privatization of social housing

JEL Classification: D12, D31, E21, G11, H31, J22, R21, R23, R51


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Date posted: May 29, 2016 ; Last revised: November 23, 2016

Suggested Citation

Sodini, Paolo and Van Nieuwerburgh, Stijn and Vestman, Roine and von Lilienfeld‐Toal, Ulf, Identifying the Benefits from Home Ownership: A Swedish Experiment (November 21, 2016). Swedish House of Finance Research Paper No. 16-11; Paris December 2016 Finance Meeting EUROFIDAI - AFFI. Available at SSRN: https://ssrn.com/abstract=2785741

Contact Information

Paolo Sodini
Stockholm School of Economics - Department of Finance ( email )
Sveavagen 65, Box 6501
SE-113 83 Stockholm
Sweden
46 8 7369165 (Phone)
46 8 312327 (Fax)
HOME PAGE: http://www.hhs.se/secfi/People/Faculty/Finpso/finp
Stijn Van Nieuwerburgh (Contact Author)
New York University Stern School of Business, Department of Finance ( email )
44 West 4th Street
Suite 9-190
New York, NY 10012-1126
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Roine Vestman
Stockholm University - Department of Economics ( email )
S-10691 Stockholm
Sweden
HOME PAGE: http://www.ne.su.se/
Swedish House of Finance ( email )
Drottninggatan 98
111 60 Stockholm
Sweden

Ulf Von Lilienfeld‐Toal
Universite du Luxembourg
L-1511 Luxembourg
Luxembourg
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