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Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys

Thomas Mathä (), Alessandro Porpiglia and Michael Ziegelmeyer ()

No 90, BCL working papers from Central Bank of Luxembourg

Abstract: Crossing borders, be it international or regional, often go together with price, wage or indeed wealth discontinuities. This paper identifies substantial wealth differences between Luxembourg resident households and cross-border commuter households despite their similar incomes. The average (median) net wealth difference is estimated to be EUR 367,000 (EUR129,000) and increases for higher percentiles. Using several different regression and decomposition techniques, spatial (regional) differences in real estate price developments, and thus differences in accumulated nominal capital gains are shown to be one main driving factor for these wealth differences. Other factors contributing to the observed wealth differences are differences in age, income, education and other household characteristics.

Keywords: household survey; wealth; real estate price dynamics; cross-border commuting (search for similar items in EconPapers)
JEL-codes: D31 J61 F22 R23 R31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-geo, nep-mig and nep-ure
Date: 2014-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

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http://www.bcl.lu/fr/Recherche/publications/cahiers_etudes/90/BCLWP090.pdf (application/pdf)

Related works:
Journal Article: Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys (2018) Downloads
Working Paper: Wealth differences across borders and the effect of real estate price dynamics: evidence from two household surveys (2014) Downloads
Working Paper: Wealth differences across borders and the of real effect estate price dynamics: Evidence from two household surveys (2014) Downloads
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