Research Seminar Quantitative MacroeconomicsCross-Country Differences in Homeownership: A Cultural PhenomenonTobias Schmidt, Bundesbank, 12:15–13:45, Room 0029 (VMP 5)

10. Mai 2016

Tobias Schmidt, Bundesbank, 12:15–13:45, Room 0029 (VMP 5)

Abstract:
Cross-country differences in homeownership rates are large and very persistent over time, ranging between 35% in Switzerland to 80% in Spain. In this project, we test the hypothesis that these cross-country differences are driven by cultural tastes. To isolate the effect of culture from the effects of institutions and economic factors, we investigate the homeownership attitudes of second-generation immigrants in the United States. We find robust evidence that cross-country differences in cultural preferences are an important explanatory factor for the observed persistent differences in homeownership rates across countries.