Identifying the Benefits from Homeownership: A Swedish Experiment

Paolo Sodini, Stijn Van Nieuwerburgh, Roine Vestman and Ulf von Lilienfeld-Toal

No 22882, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Homeownership is widely stimulated by policy yet its economic effects are poorly understood. We exploit quasi-random variation in homeownership generated by privatization decisions of municipally-owned buildings, and use granular data on demographics, income, housing, financial wealth, and debt that allow us to construct high-quality measures of spending. Homeownership causes wealth building via house price appreciation, increases consumption, and improves consumption smoothing across time and states of the world through a collateral effect. It increases mobility for young households, who move up the property ladder, and amplifies wealth accumulation for older households, who take more risk in their financial portfolio.

JEL-codes: D12 D31 E21 G11 H31 J22 R21 R23 R51 (search for similar items in EconPapers)
Date: 2016-12
New Economics Papers: this item is included in nep-mac, nep-pbe and nep-ure
Note: AP CF EFG LS PE POL
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Citations: View citations in EconPapers (9)

Published as Paolo Sodini & Stijn Van Nieuwerburgh & Roine Vestman & Ulf von Lilienfeld-Toal, 2023. "Identifying the Benefits from Homeownership: A Swedish Experiment," American Economic Review, vol 113(12), pages 3173-3212.

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Journal Article: Identifying the Benefits from Homeownership: A Swedish Experiment (2023)
Working Paper: Identifying the Benefits from Home Ownership: A Swedish Experiment (2016)
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