Do First‐Time House Buyers Receive Financial Transfers from Their Parents?* |
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Authors: | Christophe Kolodziejczyk Søren Leth‐Petersen |
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Institution: | 1. KORA, Danish Institute for Local and Regional Government Research, , DK‐1150 Copenhagen K Denmark;2. University of Copenhagen and SFI, Danish National Centre for Social Research, , DK‐1353 Copenhagen K Denmark |
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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. |
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Keywords: | Empirical analysis house purchase intergenerational transfers saving D91 E21 R29 |
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