[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
Auteur, co-auteur :
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)
Co-auteurs externes :
yes
Langue du document :
Anglais
Titre :
Identifying the Benefits from Homeownership: A Swedish Experiment
Autor, David H., Christopher J. Palmer, and Parag A. Pathak. 2014. “Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts.” Journal of Political Economy 122 (3): 661–717.
Bach, Laurent, Laurent Calvet, and Paolo Sodini. 2017. “Rich Pickings? Risk, Return, and Skill in the Portfolios of the Wealthy.” Unpublished.
Bach, Laurent, Laurent E. Calvet, and Paolo Sodini. 2020. “Supplementary data for “Rich Pickings? Risk, Return and Skill in Household Wealth.” 1959–2007.” ICPSR. https://www.openicpsr.org/openicpsr/project/117466/version/V5/view (accessed 2020).
Baker, Scott. 2018. “Debt and the Response to Household Income Shocks: Validation and Application of Linked Financial Account Data.” Journal of Political Economy 126 (4): 1504–57.
Benmelech, Efraim, Adam Guren, and Brian Melzer. 2023. “Making the House a Home: The Stimulative Effect of Home Purchases on Consumption and Investment.” Review of Financial Studies 36 (1): 122–54.
Berger, David, Veronica Guerrieri, Guido Lorenzoni, and Joseph Vavra. 2018. “House Prices and Consumer Spending.” Review of Economic Studies 85 (3): 1502–42.
Bernstein, Asaf, and Daan Struyven. 2022. “Housing Lock: Dutch Evidence on the Impact of Negative Home Equity on Household Mobility.” American Economic Journal: Economic Policy 14 (3): 1–32.
Browning, Martin, Mette Gørtz, and Søren Leth-Petersen. 2013. “Housing Wealth and Consumption: A Micro Panel Study.” Economic Journal 123 (568): 401–28.
Calvet, Laurent E., John Y. Campbell, and Paolo Sodini. 2007. “Down or Out: Assessing the Welfare Costs of Household Investment Mistakes.” Journal of Political Economy 115 (5): 707–47.
Calvet, Laurent E., and Paolo Sodini. 2014. “Twin Picks: Disentangling the Determinants of Risk-taking in Household Portfolios.” Journal of Finance 69 (2): 867–906.
Campbell, John Y., and João F. Cocco. 2007. “How Do House Prices Affect Consumption? Evidence From Micro Data.” Journal of Monetary Economics 54 (3): 591–621.
Carroll, Christopher, Misuzu Otsuka, and Jirka Slacalek. 2011. “How Large Are Housing and Financial Wealth Effects? A New Approach.” Journal of Money, Credit, and Banking 43 (1): 55–79.
Case, Karl E., John M. Quigley, and Robert J. Shiller. 2005. “Comparing Wealth Effects: The Stock Market Versus the Housing Market.” Advances in Macroeconomics 5 (1): 1–32.
Case, Karl E., John M. Quigley, and Robert J. Shiller. 2013. “Wealth Effects Revisited 1975-2012.” Critical Finance Review 2 (1): 101–28.
Cerutti, Eugenio, Jihad Dagher, and Giovanni Dell’Ariccia. 2015. Housing Finance and Real Estate Booms: A Cross-Country Perspective. Washington, DC: International Monetary Fund.
Cesarini, David, Erik Lindqvist, Matthew J. Notowidigdo, and Robert Östling. 2017. “The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries.” American Economic Review 107 (12): 3917–46.
Chetty, Raj, Nathaniel Hendren, and Lawrence F. Katz. 2016. “The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment.” American Economic Review 106 (4): 855–902.
Chetty, Raj, László Sándor, and Adam Szeidl. 2017. “The Effect of Housing on Portfolio Choice.” Journal of Finance 72 (3): 1171–1212.
Christelis, Dimitris, Dimitris Georgarakos, Tullio Jappelli, Luigi Pistaferri, and Maarten van Rooij. 2019. “Wealth Shocks and MPC Heterogeneity.” Unpublished.
Citygate. 2009. “Stock and fund price data, 1999-2009, Morningstar Sweden.” Citygate (accessed 2009).
Cloyne, James, Kilian Huber, Ethan Ilzetzki, and Henrik Kleven. 2019. “The Effect of House Prices on Household Borrowing: A New Approach.” American Economic Review 109 (6): 2104–36.
Cocco, João F. 2005. “Portfolio Choice in the Presence of Housing.” Review of Financial Studies 18 (2): 535–67.
Datastream. 2009. “Stock and fund price data, 1999-2009.” Datastream (accessed 2009).
Datastream. 2016. “Swedish equity index returns and exchange rates, 1983-2016.” Datastream (accessed 2016).
Davis, Morris A., and Stijn Van Nieuwerburgh. 2015. “Housing, Finance, and the Macroeconomy.” In Handbook of Regional and Urban Economics, Vol. 5, edited by Gilles Duranton, Vernon Henderson, and William Strange, 753–811. Amsterdam: Elsevier.
DeFusco, Anthony A. 2018. “Homeowner Borrowing and Housing Collateral: New Evidence from Expiring Price Controls.” Journal of Finance 73 (2): 523–73.
Di Tella, Rafael, Sebastian Galiant, and Ernesto Schargrodsky. 2007. “The Formation of Beliefs: Evidence from the Allocation of Land Titles to Squatters.” Quarterly Journal of Economics 122 (1): 209–41.
Diamond, Rebecca, and Tim McQuade. 2019. “Who Wants Affordable Housing in their Backyard? An Equilibrium Analysis of Low-Income Property Development.” Journal of Political Economy 127 (3): 1063–1117.
Diamond, Rebecca, Tim McQuade, and Franklin Qian. 2019. “The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco.” American Economic Review 109 (9): 3365–94.
DiPasquale, Denise, and Edward L. Glaeser. 1999. “Incentives and Social Capital: Are Homeowners Better Citizens?” Journal of Urban Economics 45 (2): 354–84.
Eika, Lasse, Magne Mogstad, and Ola L. Vestad. 2017. “What can we Learn about Household Consumption Expenditure from Data on Income and Assets?” Unpublished.
Elenev, Vadim, Tim Landvoigt, and Stijn Van Nieuwerburgh. 2016. “Phasing out the GSEs.” Journal of Monetary Economics 81: 111–32.
Elsinga, Marja, Mark Stephens, and Thomas Knorr-Siedow. 2014. “The Privatisation of Social Housing: Three Different Pathways.” In Social Housing in Europe, edited by Kathleen Scanlon, Christine Whitehead, and Melissa Fernández Arrigoitia, 389–413. New York, NY: John Wiley and Sons.
Fagereng, Andreas, Martin Holm Blomhoff, and Gisle James Natvik. 2021. “MPC Heterogeneity and Household Balance Sheets.” American Economic Journal: Macroeconomics 13 (4): 1–54.
Fagereng, Andreas, Luigi Guiso, and Luigi Pistaferri. 2017. “Firm-related Risk and Precautionary Saving Response.” American Economic Review 107 (5): 393–97.
Fagereng, Andreas, Luigi Guiso, and Luigi Pistaferri. 2018. “Portfolio Choices, Firm Shocks and Uninsurable Wage Risk.” Review of Economic Studies 85 (1): 437–74.
Favilukis, Jack, Pierre Mabille, and Stijn Van Nieuwerburgh. 2023. “Affordable Housing and City Welfare.” Review of Economic Studies 90 (1): 293-330.
FinBas. 2016. “FinBas at Swedish House of Finance Research Data Center, 1983-2016.” FinBas. https://www.hhs.se/en/houseoffinance/data-center/ (accessed 2016).
Ganong, Peter, and Pascal Noel. 2020. “Liquidity versus Wealth in Household Debt Obligations: Evidence from Housing Policy in the Great Recession.” American Economic Review 110 (10): 3100–3138.
Giglio, Stefano, Matteo Maggiori, Johannes Stroebel, and Andreas Weber. 2021. “Climate Change and Long-Run Discount Rates: Evidence from Real Estate.” Review of Financial Studies 34 (8): 3527–71.
Glaeser, Edward L. 2011. “Rethinking the Federal Bias Toward Homeownership.” Cityscape 13 (2): 5–37.
Goodman, Laurie, and Christopher Mayer. 2018. “Homeownership and the American Dream.” Journal of Economic Perspectives 32 (1): 31–58.
Green, Richard K., and Michelle J. White. 1997. “Measuring the Benefits of Homeowning: Effects on Children.” Journal of Urban Economics 41 (3): 441–61.
Guren, Adam M., Alisdair McKay, Emi Nakamura, and Jon Steinsson. 2020. “Housing Wealth Effects: The Long View.” Review of Economic Studies 88 (2): 669–707.
Haurin, Donald R., Toby L. Parcel, and R. Jean Haurin. 2002. “Does Homeownership Affect Child Outcomes?” Real Estate Economics 30 (4): 635–66.
Hurst, Erik, and Frank Stafford. 2004. “Home Is Where the Equity Is: Mortgage Refinancing and Household Consumption.” Journal of Money, Credit, and Banking 36 (6): 985–1014.
Jeske, Karsten, Dirk Krueger, and Kurt Mitman. 2013. “Housing, Mortgage Bailout Guarantees and the Macro Economy.” Journal of Monetary Economics 60 (8): 917–35.
Jordà, Òscar, Katharina Knoll, Dmitry Kuvshinov, Moritz Schularick, and Alan M. Taylor. 2019. “The Rate of Return on Everything, 1870-2015.” Quarterly Journal of Economics 134 (3): 1225–98.
Kaplan, Greg, Kurt Mitman, and Gianluca Violante. 2020. “Non-durable Consumption and Housing Net Worth in the Great Recession: Evidence from Easily Accessible Data.” Journal of Public Economics 189: 104176.
Kaplan, Greg, Giovanni L. Violante, and Justin Weidner. 2014. “The Wealthy Hand-to-Mouth.” Brookings Papers on Economic Activity 44 (1): 77–138.
Kleibergen, Frank, and Richard Paap. 2006. “Generalized Reduced Rank Tests Using the Singular Value Decomposition.” Journal of Econometrics 133 (1): 97–126.
Koijen, Ralph, Stijn Van Nieuwerburgh, and Roine Vestman. 2014. “Judging the Quality of Survey Data by Comparison with “Truth” as Measured by Administrative Records: Evidence from Sweden.” In Improving the Measurement of Consumer Expenditures, edited by Christopher D. Carroll, Thomas F. Crossley, and John Sabelhaus, 308–46. Cambridge, MA: NBER.
Kuhn, Moritz, Moritz Schularick, and Ulrike I. Steins. 2020. “Income and Wealth Inequality in America, 1949-2016.” Journal of Political Economy 128 (9): 3469–3519.
Laibson, David, Peter Maxted, and Benjamin Moll. 2022. “A Simple Mapping from MPCs to MPXs.” NBER Working Paper 29664.
Lea, Michael. 2010. “International Comparison of Mortgage Product Offerings.” SSRN Working Paper 1683472.
eth-Petersen, Søren. 2010. “Intertemporal Consumption and Credit Constraints: Does Total Expenditure Respond to An Exogenous Shock to Credit?” American Economic Review 100 (3): 1080–1103.
ustig, Hanno, and Stijn Van Nieuwerburgh. 2005. “Housing Collateral, Consumption Insurance and Risk Premia: An Empirical Perspective.” Journal of Finance 60 (3): 1167–1219.
ustig, Hanno, and Stijn Van Nieuwerburgh. 2010. “How Much Does Housing Collateral Constrain Regional Risk Sharing?” Review of Economic Dynamics 13 (2): 265–94.
Mian, Atif, Kamalesh Rao, and Amit Sufi. 2013. “Household Balance Sheets, Consumption, and the Economic Slump.” Quarterly Journal of Economics 128 (4): 1687–1726.
Mian, Atif, and Amir Sufi. 2011. “House Prices, Home Equity-Based Borrowing, and the U.S. Household Leverage Crisis.” American Economic Review 101 (5): 2132–56.
Morningstar. 2009. “Stock and fund price data, 1999-2009.” Morningstar (accessed 2009). NGM. 2009. “Stock and fund price data, 1999-2009.” NGM (accessed 2009). OMX. 2009. “Stock and fund price data, 1999-2009, Nasdaq-OMX.” OMX (accessed 2009). Ortalo-Magne, Francois, and Sven Rady. 2006. “Housing Market Dynamics: On the Contribution of Income Shocks and Credit Constraints.” Review of Economic Studies 73 (2): 459–85.
aiella, Monica, and Luigi Pistaferri. 2017. “Decomposing the Wealth Effect on Consumption.” Review of Economics and Statistics 99 (4): 710–21.
oterba, James, and Todd Sinai. 2008. “Tax Expenditures for Owner- Occupied Housing: Deductions for Property Taxes and Mortgage Interest and the Exclusion of Imputed Rental Income.” American Economic Review 98 (2): 84–89.
ohe, William M., and Victoria Basolo. 1997. “Long-Term Effects of Homeownership on the Self-Perceptions and Social Interaction of Low-Income Persons.” Environment and Behavior 29 (6): 793–819.
ohe, William M., and Michael A. Stegman. 1994. “The Impact of Home Ownership on the Social and Political Involvement of Low-Income People.” Urban Affairs Review 30 (1): 152–72.
ossi, Peter H., and Eleanor Weber. 1996. “The Social Benefits of Homeownership: Empirical Evidence from National Surveys.” Housing Policy Debate 7 (1): 1–35.
ossi-Hansberg, Esteban, Pierre Daniel Sarte, and Raymond Owens. 2010. “Housing Externalities.” Journal of Political Economy 118 (3): 485–535.
hlay, Anne B. 1985. “Castles in the Sky Measuring Housing and Neighborhood Ideology.” Environment and Behavior 17 (5): 593–626.
hlay, Anne B. 1986. “Taking Apart the American Dream: The Influence of Income and Family Composition on Residential Evaluations.” Urban Studies 23 (4): 253–70.
inai, Todd, and Nicholas S. Souleles. 2005. “Owner-Occupied Housing as a Hedge Against Rent Risk.” Quarterly Journal of Economics 120 (2): 763–89.
odini, Paolo, Stijn Van Nieuwerburgh, Roine Vestman, and Ulf von Lilienfeld-Toal. 2023. “Replication data for: Identifying the Benefits from Homeownership: A Swedish Experiment.” American Economic Association [publisher], Inter-university Consortium for Political and Social Research [distributor]. https://doi.org/10.3886/E192504V1.
ommer, Kamila, and Paul Sullivan. 2013. “Implications of U.S. Tax Policy for House Prices, Rents and Homeownership.” Unpublished.
Stockholmshem. 2004. “List of tenants at Stockholmshem.” Stockholmshem. https://www.stockholmshem.se/ (accessed 2015).
Svenska Bostäder. 2004. “List of tenants at Svenska Bostäder.” https://www.svenskabostader.se/ (accessed 2015).
Svensk Mäklarstatistik. 2020. “Real estate transactions, 2005-2020” (accessed in 2020).
Vestman, Roine. 2019. “Limited Stock Market Participation Among Renters and Homeowners.” Review of Financial Studies 32 (4): 1494–1535.
Westin, Ann-Margret, Dawn Yi Lin Chew, Francesco Columba, Alessandro Gullo, Deniz Igan, Andreas Jobst, John Kiff, et al. 2011. “Housing Finance and Financial Stability—Back to Basics?” In Global Financial Stability Report, 111–57. Washington, DC: International Monetary Fund.
Yao, Rui, and Harold H. Zhang. 2005. “Optimal Consumption and Portfolio Choices with Risky Housing and Borrowing Constraint.” Review of Financial Studies 18 (1): 197–239.
