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Do First‐Time House Buyers Receive Financial Transfers from Their Parents? *
Author(s) -
Kolodziejczyk Christophe,
LethPetersen Søren
Publication year - 2013
Publication title -
the scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/sjoe.12032
Subject(s) - exploit , economics , sample (material) , danish , unemployment , panel data , productivity , test (biology) , labour economics , demographic economics , finance , monetary economics , econometrics , macroeconomics , paleontology , linguistics , chemistry , philosophy , computer security , chromatography , biology , computer science
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.