Household Wealth in the Euro Area: The Importance of Intergenerational Transfers, Homeownership and House Price Dynamics

50 Pages Posted: 27 Aug 2014

See all articles by Thomas Y. Mathä

Thomas Y. Mathä

Banque centrale du Luxembourg

Alessandro Porpiglia

Banque Centrale du Luxembourg

Michael Ziegelmeyer

Banque centrale du Luxembourg; Max Planck Institute for Social Law and Social Policy

Date Written: June 11, 2014

Abstract

Results from the Eurosystem Household Finance and Consumption Survey reveal substantial variation in household net wealth across euro area countries that await explanation. This paper focuses on three main factors for the wealth accumulation process, i) homeownership, ii) housing value appreciation and iii) intergenerational transfers. We show that these three factors, in addition to the common household and demographic factors, are relevant for the net wealth accumulation process in all euro area countries, and moreover that, using various decomposition techniques, differences therein, in particular in homeownership rates and house price dynamics, are important for explaining wealth differences across euro area countries.

Keywords: household wealth, homeownership, property prices, inheritance, euro area

JEL Classification: D31, E21, O52, C42

Suggested Citation

Mathä, Thomas Y. and Porpiglia, Alessandro and Ziegelmeyer, Michael Heinrich, Household Wealth in the Euro Area: The Importance of Intergenerational Transfers, Homeownership and House Price Dynamics (June 11, 2014). Max Planck Institute for Social Law and Social Policy Discussion Paper No. 289-14, Available at SSRN: https://ssrn.com/abstract=2487119 or http://dx.doi.org/10.2139/ssrn.2487119

Thomas Y. Mathä (Contact Author)

Banque centrale du Luxembourg ( email )

2, bd Royal
L-2983 Luxembourg
Luxembourg
+352 4774 4270 (Phone)
+352 4774 4920 (Fax)

Alessandro Porpiglia

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Michael Heinrich Ziegelmeyer

Banque centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Max Planck Institute for Social Law and Social Policy ( email )

Amalienstraße 33
München, 80799
Germany

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