Liquidity Constraints, Wealth Transfers and Home Ownership

Kristian Blickle and Martin Brown

No 1618, Working Papers on Finance from University of St. Gallen, School of Finance

Abstract: We study the impact of liquidity constraints on home ownership by comparing the tenure and housing choice of households who receive intra-family wealth transfers to those that do not. Our analysis is based on household-level panel data providing annual information on household characteristics, wealth transfers, tenure status as well as changes in the size and quality of housing. Our treatment effect estimates suggest that wealth transfers increase the propensity of households to transition to ownership by 15 to 20 percentage points. By contrast, wealth transfers do not increase the likelihood that existing homeowners “trade-up” to larger homes in better locations.

Keywords: Liquidity Constraints; Tenure Choice; Wealth Transfers; Macroprudential Policy (search for similar items in EconPapers)
JEL-codes: D14 D31 D91 G18 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2016-09
New Economics Papers: this item is included in nep-sog and nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:usg:sfwpfi:2016:18

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