The Relation Between Financial and Housing Wealth of Dutch Households
AbstractWe analyze households' joint investment decisions for financial wealth and homes.In our bivariate censored regression model with endogenous switching, fixed costs or transaction costs are captured by a threshold that has to be passed before the purchase.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 payment constraints in the Netherlands.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1996-82.
Date of creation: 1996
Date of revision:
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Web page: http://center.uvt.nl
housing; household economics; The Netherlands;
Other versions of this item:
- Hochguertel, Stefan & van Soest, Arthur, 1998. "The Relation between Financial and Housing Wealth of Dutch Households," Working Paper Series 1998:19, Uppsala University, Department of Economics.
- Hochguertel, S. & van Soest, A., 1998. "The Relation Between Financial and Housing Wealth of Dutch Households," Papers 1998:19, Uppsala - Working Paper Series.
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
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