We host different speakers at our Economic Theory & Policy Seminar. 

Upcoming topics and speakers will be posted below.

03. June 2024, 16:00 until 17:30

Theory & Policy Seminar / Gisle Natvik (BI Norwegian Business School) / The housing channel of intergenerational wealth persistence

Seminar

Gisle Natvik will give a talk at our Economic Theory & Policy Seminar.

"The housing channel of intergenerational wealth persistence"

Gisle Nativk, opens an external URL in a new window (BI Norwegian Business School)

with Ella Getz Wold, Knut Are Aastveit, Eirik Eylands Brandsaas and Ragnar Enger Juelsrud

We use Norwegian tax data and a life-cycle model with housing to study how wealth transmits across generations through the housing market. After controlling for a rich set of attributes, households with richer parents are nearly 15% more likely to be homeowners at age 30. Moreover, when entering, they have higher leverage and buy homes worth 15% more. Estimates using international stock market returns as a shiftshare instrument support a causal interpretation. We further document that housing outcomes when young are important determinants of midlife wealth. This holds also when using plausibly exogenous variation in homeownership caused by the timing of intra-family deaths. As a result, housing gaps caused purely by parental wealth explain 12% of intergenerational wealth persistence, making housing equally important as the combined impact of a wide range of household characteristics including income and education. We explore new mechanisms for parental support, such as intra-family housing transactions below market value. Through the lens of our model, house price expectations stand out as a key driver of the magnitude of the housing channel of intergenerational wealth persistence.

Calendar entry

Event location

TU Wien
1040 Vienna
TU Wien, DA green 04 1040 Vienna Wiedner Haupstr. 8-10, Freihaus Buidling, green area, 4th floor (Seminarroom DA04 green)

 

Organiser

Economics
Julia Hutter
julia.hutter@tuwien.ac.at

 

Public

Yes

 

Entrance fee

No

 

Registration required

No

Theory & Policy Seminar / Gisle Natvik (BI Norwegian Business School) / The housing channel of intergenerational wealth persistence

Gisle Natvik will give a talk at our Economic Theory & Policy Seminar.

"The housing channel of intergenerational wealth persistence"

Gisle Nativk, opens an external URL in a new window (BI Norwegian Business School)

with Ella Getz Wold, Knut Are Aastveit, Eirik Eylands Brandsaas and Ragnar Enger Juelsrud

We use Norwegian tax data and a life-cycle model with housing to study how wealth transmits across generations through the housing market. After controlling for a rich set of attributes, households with richer parents are nearly 15% more likely to be homeowners at age 30. Moreover, when entering, they have higher leverage and buy homes worth 15% more. Estimates using international stock market returns as a shiftshare instrument support a causal interpretation. We further document that housing outcomes when young are important determinants of midlife wealth. This holds also when using plausibly exogenous variation in homeownership caused by the timing of intra-family deaths. As a result, housing gaps caused purely by parental wealth explain 12% of intergenerational wealth persistence, making housing equally important as the combined impact of a wide range of household characteristics including income and education. We explore new mechanisms for parental support, such as intra-family housing transactions below market value. Through the lens of our model, house price expectations stand out as a key driver of the magnitude of the housing channel of intergenerational wealth persistence.