Household Finance at the Origin: Home Ownership as a Cultural Heritage from Agriculture

Guillaume Vuillemey
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Guillaume Vuillemey: HEC Paris

No 1477, HEC Research Papers Series from HEC Paris

Abstract: I show that home ownership decisions across countries and individuals are shaped by a cultural heritage from agriculture. For centuries, dominant assets in pre-industrial economies were either land or cattle. Consequently, the type of farming prevailing locally shaped preferences and believes about the relative value of immovable and movable assets. This cultural heritage had long-lasting consequences. Today, individuals originating from societies with a history of crop agriculture - where the dominant asset was land - are more likely to be homeowners. For identification, I rely both on home ownership decisions of second-generation immigrants in the US and on instrumental variables.

Keywords: Homeownership; Culture; Persistence; Immovable assets; Movable assets; Agriculture; Land (search for similar items in EconPapers)
JEL-codes: G11 G51 R21 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2023-02-09
New Economics Papers: this item is included in nep-agr, nep-cul, nep-fdg, nep-his and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:1477

DOI: 10.2139/ssrn.4351428

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