IDEAS home Printed from https://ideas.repec.org/a/cuf/journl/y2023v24i1liliouyang.html
   My bibliography  Save this article

Housing and Wealth Inequality: The Role of Financial Market Participation

Author

Listed:
  • Jie Li

    (Central University of Finance and Economics)

  • Sheng Li

    (Central University of Finance and Economics)

  • Alice Y. Ouyang

    (Central University of Finance and Economics)

Abstract

This paper examines how homeownership and housing value appreciation may contribute to household wealth accumulation, and possibly widen wealth inequality. We argue that housing value appreciation may strengthen households' willingness to invest in financial markets through raising households' risk tolerance on investment and increasing the collateral value of housing. This investment channel benefits the wealthier households more, and further enlarges wealth inequality. Using China Household Finance Survey (CHFS) data in 2019, we lend empirical support to this argument and find it explain well on China’s widening wealth inequality.

Suggested Citation

  • Jie Li & Sheng Li & Alice Y. Ouyang, 2023. "Housing and Wealth Inequality: The Role of Financial Market Participation," Annals of Economics and Finance, Society for AEF, vol. 24(1), pages 141-170, May.
    • Handle: RePEc:cuf:journl:y:2023:v:24:i:1:liliouyang
    as

    Download full text from publisher

    File URL: http://down.aefweb.net/AefArticles/aef240107LiLiOuyang.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Housing; Wealth accumulation; Financial market Participation; Inequality;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cuf:journl:y:2023:v:24:i:1:liliouyang. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Qiang Gao (email available below). General contact details of provider: https://edirc.repec.org/data/emcufcn.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.