The Relation between Financial and Housing Wealth of Dutch Households
نویسندگان
چکیده
We analyze households' joint investment decisions for nancial wealth and homes. We use a bivariate censored regression model with endogenous switching. Fixed costs or transaction costs are captured by an unobserved nonzero censoring threshold. The model allows for spill{over e ects of a binding threshold for one asset on the demand for the other asset. We nd that tenure choice a ects the level of nancial wealth. Our results do not support the view that people rst accumulate nancial wealth before acquiring homes. This can be due to the absence of down payment constraints in the Netherlands.
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