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Cross-country differences in homeownership: A cultural phenomenon?

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  • Huber, Stefanie J.
  • Schmidt, Tobias

Abstract

Cross-country differences in homeownership rates are large and persistent over time, with homeownership rates ranging from 40% in Switzerland to 80% in Spain. This paper investigates whether culture is a driving factor of the homeownership decision, and could thus explain part of the cross-country differences in homeownership rates. To isolate the effect of cultural preferences regarding homeownership from the impact of institutions and economic factors, we investigate the homeownership decisions of second-generation immigrants in the United States between 1994 and 2017. Our findings indicate that cultural preferences for homeownership are persistent, transmitted between generations, and substantially influence the rent-versus-buy decision.

Suggested Citation

  • Huber, Stefanie J. & Schmidt, Tobias, 2019. "Cross-country differences in homeownership: A cultural phenomenon?," Discussion Papers 40/2019, Deutsche Bundesbank.
  • Handle: RePEc:zbw:bubdps:402019
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    References listed on IDEAS

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    Cited by:

    1. Nicola Fuchs‐Schündeln & Paolo Masella & Hannah Paule‐Paludkiewicz, 2020. "Cultural Determinants of Household Saving Behavior," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(5), pages 1035-1070, August.
    2. Schüler, Yves S. & Hiebert, Paul P. & Peltonen, Tuomas A., 2020. "Financial cycles: Characterisation and real-time measurement," Journal of International Money and Finance, Elsevier, vol. 100(C).
    3. Michal Brzezinski & Katarzyna Salach, 2020. "Why wealth inequality differs between post-socialist countries?," Working Papers 551, ECINEQ, Society for the Study of Economic Inequality.
    4. Graziella Bertocchi & Marianna Brunetti & Anzelika Zaiceva, 2018. "The Financial Decisions of Immigrant and Native Households: Evidence from Italy," Center for Economic Research (RECent) 137, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    5. Clara Toledano, 2017. "House Price Cycles, Wealth Inequality and Portfolio Reshuffling," PSE Working Papers halshs-02797549, HAL.
    6. Clara Toledano, 2017. "House Price Cycles, Wealth Inequality and Portfolio Reshuffling," World Inequality Lab Working Papers halshs-02797549, HAL.
    7. Marcén, Miriam & Morales, Marina, 2019. "Gender division of household labor: How does culture operate?," GLO Discussion Paper Series 373, Global Labor Organization (GLO).
    8. Orsetta Causa & Nicolas Woloszko & David Leite, 2020. "Housing, Wealth Accumulation and Wealth Distribution: Evidence and Stylized Facts," LWS Working papers 30, LIS Cross-National Data Center in Luxembourg.
    9. Clara Toledano, 2017. "House Price Cycles, Wealth Inequality and Portfolio Reshuffling," Working Papers halshs-02797549, HAL.
    10. Fleck, Johannes & Monninger, Adrian, 2020. "Culture and portfolios: trust, precautionary savings and home ownership," Working Paper Series 2457, European Central Bank.
    11. Graziella Bertocchi & Marianna Brunetti & Anzelika Zaiceva, 2018. "The Financial Decisions of Immigrant and Native Households: Evidence from Italy," Department of Economics 0138, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".

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    More about this item

    Keywords

    housing decisions; second generationmigrants; epidemological approach;
    All these keywords.

    JEL classification:

    • G40 - Financial Economics - - Behavioral Finance - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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