Identifying the Benefits from Home Ownership: A Swedish Experiment

Stijn Van Nieuwerburgh, Roine Vestman and Ulf von Lilienfeld-Toal

No 11656, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Home ownership; Housing wealth; Mpc; Collateral effect; Mobility (search for similar items in EconPapers)
JEL-codes: D12 D31 E21 G11 H31 J22 R21 R23 R51 (search for similar items in EconPapers)
Date: 2016-11
New Economics Papers: this item is included in nep-lma, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Identifying the Benefits from Homeownership: A Swedish Experiment (2023)
Working Paper: Identifying the Benefits from Homeownership: A Swedish Experiment (2016)
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