Reference : The Effect of Housing on Portfolio Choice
Scientific journals : Article
Business & economic sciences : Finance
Finance
http://hdl.handle.net/10993/32945
The Effect of Housing on Portfolio Choice
English
Chetty, Raj [Stanford University > Department of Economics]
Szeidl, Adam [Central European University > Department of Economics]
Sandor, Laszlo mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Luxembourg School of Finance (LSF) >]
21-Apr-2017
Journal of Finance
Blackwell Publishing
72
3
1171–1212
Yes (verified by ORBilu)
International
0022-1082
1540-6261
[en] We show that characterizing the effects of housing on portfolios requires distinguishing between the effects of home equity and mortgage debt. We isolate exogenous variation in home equity and mortgages by using differences across housing markets in house prices and housing supply elasticities as instruments. Increases in property value (holding home equity constant) reduce stockholdings, while increases in home equity wealth (holding property value constant) raise stockholdings. The stock share of liquid wealth would rise by 1 percentage point—6% of the mean stock share—if a household were to spend 10% less on its house, holding fixed wealth.
Researchers ; Professionals ; Students ; General public
http://hdl.handle.net/10993/32945
10.1111/jofi.12500

File(s) associated to this reference

Fulltext file(s):

FileCommentaryVersionSizeAccess
Limited access
jofi12500_published.pdfPublisher postprint376.77 kBRequest a copy

Bookmark and Share SFX Query

All documents in ORBilu are protected by a user license.