A micro view on home equity withdrawal and its determinants. Evidence from Dutch households
Home equity is the most important part of a household portfolio, but only recently has it become more accessible through innovations in the mortgage market and financial deregulation. This study looks at the factors driving home equity withdrawal on a household level using Dutch survey data and assesses to which degree different theoretical predictions can be empirically supported. There is little evidence that equity withdrawal is used as a buffer against adverse income shocks, with financial motives and life-cycle effects likely to dominate a household’s decision. Finally, the study provides... Mehr ...
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Dokumenttyp: | doc-type:workingPaper |
Erscheinungsdatum: | 2010 |
Verlag/Hrsg.: |
München: Ludwig-Maximilians-Universität München
Volkswirtschaftliche Fakultät |
Schlagwörter: | ddc:330 / D1 / D9 / E2 / E4 / G2 / home equity withdrawal / Dutch housing market / consumption models / Wohnungsbaufinanzierung / Hypothek / Private Verschuldung / Liquiditätsbeschränkung / Schätzung / Niederlande |
Sprache: | Englisch |
Permalink: | https://search.fid-benelux.de/Record/base-27638364 |
Datenquelle: | BASE; Originalkatalog |
Powered By: | BASE |
Link(s) : | http://hdl.handle.net/10419/104316 |
Home equity is the most important part of a household portfolio, but only recently has it become more accessible through innovations in the mortgage market and financial deregulation. This study looks at the factors driving home equity withdrawal on a household level using Dutch survey data and assesses to which degree different theoretical predictions can be empirically supported. There is little evidence that equity withdrawal is used as a buffer against adverse income shocks, with financial motives and life-cycle effects likely to dominate a household’s decision. Finally, the study provides first evidence of the impact of changing supply side conditions on home equity withdrawal.