Identifying the Benefits from Homeownership: A Swedish Experiment

Sodini, Paolo; Van Nieuwerburgh, Stijn; Vestman, Roine; VON LILIENFELD-TOAL, Ulf

doi:10.1257/aer.20171449

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Identifying the Benefits from Homeownership: A Swedish Experiment

Sodini, Paolo; Van Nieuwerburgh, Stijn; Vestman, Roine et al.

2023 • In American Economic Review, 113 (12), p. 3173-3212

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https://hdl.handle.net/10993/60151

DOI
10.1257/aer.20171449

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Keywords :

Economics and Econometrics

Abstract :

[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

Publication date :

01 December 2023

Journal title :

American Economic Review

ISSN :

0002-8282

Publisher :

American Economic Association

Volume :

113

Issue :

Pages :

3173-3212

Peer reviewed :

Peer Reviewed verified by ORBi

Additional URL :

https://pubs.aeaweb.org/doi/pdf/10.1257/aer.20171449

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