[en] 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 accumulation via house price appreciation, increases consumption, and improves consumption smoothing across time and states of the world. 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 D15, E21, G51, R21, R23, R31, R38)
Disciplines :
Finance
Author, co-author :
Sodini, Paolo; Stockholm School of Economics (email: )
Van Nieuwerburgh, Stijn; Columbia Business School
Vestman, Roine; Stockholm University (email: )
VON LILIENFELD-TOAL, Ulf ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Finance (DF)
External co-authors :
yes
Language :
English
Title :
Identifying the Benefits from Homeownership: A Swedish Experiment
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