The Relation between Financial and Housing Wealth of Dutch Households

Stefan Hochguertel () and Arthur van Soest ()

No 1998:19, Working Paper Series from Uppsala University, Department of Economics

Abstract: We analyze households' joint investment decisions for financial wealth and homes. We use a bivariate censored regression model with endogenous switching. Fixed costs or transaction costs are captured by an unobserved nonzero censoring threshold. The model allows for spill-over effects of a binding threshold for one asset on the demand for the other asset. We find that tenure choice affects the level of financial wealth. Our results do not support the view that people first accumulate financial wealth before acquiring homes.This can be due to the absence of down payments constraints in the Netherlands.

Keywords: Housing demand; Household saving; Portfolio choice; Limited dependent variables (search for similar items in EconPapers)
JEL-codes: C34 D12 G11 R21 (search for similar items in EconPapers)
Pages: 28 pages
Date: 1998-08-15
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Urban Economics, 2001, pages 374-403.

Downloads: (external link)
http://www.nek.uu.se/pdf/1998wp19.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.nek.uu.se/pdf/1998wp19.pdf [301 Moved Permanently]--> https://www.nek.uu.se/pdf/1998wp19.pdf [301 Moved Permanently]--> https://www.uu.se/institution/nationalekonomiska/pdf/1998wp19.pdf)

Related works:
Working Paper: The Relation Between Financial and Housing Wealth of Dutch Households (1998)
Working Paper: The Relation Between Financial and Housing Wealth of Dutch Households (1996)
Working Paper: The Relation Between Financial and Housing Wealth of Dutch Households (1996)
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: https://EconPapers.repec.org/RePEc:hhs:uunewp:1998_019

Access Statistics for this paper

More papers in Working Paper Series from Uppsala University, Department of Economics Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Ulrika Öjdeby ().