Do First Time House Buyers Receive Financial Transfers from Their Parents?

Christophe Kolodziejczyk, Søren Leth-Petersen

10 Citations (Scopus)

Abstract

Using Danish longitudinal data with information about wealth for a sample of first-time house buyers and their parents, we test whether there are direct financial transfers from parents to children in connection with the house purchase, or in connection with unemployment spells occurring just after the purchase, when children typically hold few liquid assets. First, we document that child and parent financial resources are correlated. Then, we introduce conditioning variables and exploit the panel aspect of the data to also condition on fixed unobserved factors, which arguably govern preferences and/or productivity. We find no evidence of direct financial transfers.

Original languageEnglish
JournalScandinavian Journal of Economics
Volume115
Issue number4
Pages (from-to)1020-1045
Number of pages25
ISSN0347-0520
DOIs
Publication statusPublished - Oct 2013

Keywords

  • Faculty of Social Sciences
  • Empirical analysis
  • house purchase
  • intergenerational transfers

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