Economics at your fingertips  

Owner-Occupied Housing and Demand for Risky Financial Assets: Some Finnish Evidence

Tuukka Saarimaa ()

Finnish Economic Papers, 2008, vol. 21, issue 1, 22-38

Abstract: This paper studies the linkage between owner-occupied housing and portfolio choice. Using a theoretical simulation model with Finnish asset return data we find that a leveraged position in housing has a clear negative effect on the share of stocks in a mean-variance efficient portfolio. The second part of the paper studies how owner-occupied housing actually affects households’ financial portfolios using Finnish household data. The main result indicates that the more valuable house a homeowner resides in, at a given level of net wealth, the less likely it is to own stocks. However, it seems that housing has only a small effect if any on the share of financial assets a household invests in stocks conditional on stockholding.

JEL-codes: D14 D91 G11 R21 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link) ... ep12008_saarimaa.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Finnish Economic Papers from Finnish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Editorial Secretary ( this e-mail address is bad, please contact ).

Page updated 2022-10-29
Handle: RePEc:fep:journl:v:21:y:2008:i:1:p:22-38