NBER

Ulf von Lilienfeld-Toal

Université du Luxembourg
4, rue Albert Borschette
L-1246 Luxembourg
Luxembourg

E-Mail: ulf.vonlilienfeld-toal@uni.lu
Institutional Affiliation: University of Luxembourg

NBER Working Papers and Publications

December 2016Identifying the Benefits from Home Ownership: A Swedish Experiment
with Paolo Sodini, Stijn Van Nieuwerburgh, Roine Vestman: w22882
This paper studies the economic benefits of home ownership. Exploiting a quasi-experiment surrounding privatization decisions of municipally-owned apartment buildings, we obtain random variation in home ownership for otherwise similar buildings with similar tenants. We link the tenants to their tax records to obtain information on demographics, income, mobility patterns, housing wealth, financial wealth, and debt. These data allow us to construct high-quality measures of consumption expenditures. Home ownership causes households to move up the housing ladder, work harder, and save more. Consumption increases out of housing wealth are concentrated among the home owners who sell subsequent to privatization and among those who receive negative income shocks, evidencing a collateral effect.

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