Financial Market Imperfections and Home Ownership: A Comparative Study

European Economic Review

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Date Published 2003
Primary Author Maria Concetta Chiuri
Other Authors Tullio Jappelli
Theme Comparing Housing Finance Systems


We explore the determinants of the distribution of owner occupancy rates across age groups using a collection of microeconomic data on 14 OECD countries. In most, the survey is repeated over time. This allows us to construct an international dataset, merging data on 39 national household surveys with aggregate data on down payment ratios. We 5nd strong evidence that the availability of mortgage 5nance – as measured by down payment ratios – a6ects the distribution of owner occupancy rates across age groups, especially at the young end. The results are consistent with previous theoretical models and have important implications for the debate on the relation between saving and growth.

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