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Wealth differences across borders and the of real effect estate price dynamics: Evidence from two household surveys

Author

Listed:
  • Mathä, Thomas Y.
  • Porpiglia, Alessandro
  • Ziegelmeyer, Michael

    (Munich Center for the Economics of Aging (MEA))

Abstract

Crossing borders, be it international or regional, often go togther with price wage or indeed wealth discontinuities. This paper identifies substantial wealth differences between Luxembourg resident households and cross-border commuter households despite their similar incomes. The av-erage (median) net wealth difference is estimated to be €367,000 (€129,000) and increases for higher percentiles. Using several different regression and decomposition techniques, spatial (regional) dif-ferences in real estate price developments, and thus differences in accumulated nominal capital gains are shown to be one main driving factor for these wealth differences. Other factors contribut-ing to the observed wealth differences are differences in age, income, education and other house-hold characteristics.

Suggested Citation

  • Mathä, Thomas Y. & Porpiglia, Alessandro & Ziegelmeyer, Michael, 2014. "Wealth differences across borders and the of real effect estate price dynamics: Evidence from two household surveys," MEA discussion paper series 201411, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    • Handle: RePEc:mea:meawpa:201411
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    Cited by:

    1. Mathä, Thomas Y. & Porpiglia, Alessandro & Ziegelmeyer, Michael, 2017. "Household wealth in the euro area: The importance of intergenerational transfers, homeownership and house price dynamics," Journal of Housing Economics, Elsevier, vol. 35(C), pages 1-12.
    2. Michael Ziegelmeyer, 2015. "Other real estate property in selected euro area countries," BCL working papers 99, Central Bank of Luxembourg.
    3. Anastasia Girshina & Thomas Y. Mathä & Michael Ziegelmeyer, 2017. "The Luxembourg Household Finance and Consumption Survey: Results from the 2nd wave," BCL working papers 106, Central Bank of Luxembourg.
    4. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2018. "Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys," Journal of Income Distribution, Ad libros publications inc., vol. 26(1), pages 1-35, March.
    5. Thomas Y. Mathä & Giuseppe Pulina & Michael Ziegelmeyer, 2018. "The Cross-border Household Finance and Consumption Survey: Results from the second wave," BCL working papers 119, Central Bank of Luxembourg.
    6. Boldova Marzo, Daniel Miguel, 2022. "Análisis de la acumulación y distribución de la riqueza [Analysis of capital accumulation and weatlh distribution]," MPRA Paper 113582, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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