December 22, 2015

Home Ownership and Household Portfolio Choice

We study the effect of home equity and indebtedness on financial portfolio choices of Dutch households during the period 2006-2012. Using a large administrative dataset at the household level we estimate how home equity and the outstanding mortgage amount influence the share of liquid assets held in stocks.
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We apply different econometric methods to take selection and endogeneity into account. In our preferred specifications both home equity and the household’s
amount of mortgage debt have a non-significant impact on the risky asset share.

Contacts

Thomas Michielsen Read more
Remco Mocking Read more
Foto Sander van Veldhuizen
Sander van Veldhuizen +31 6 11648608 Read more