A micro view on home equity withdrawal and its determinants. Evidence from Dutch households

Ebner, André (January 2010): A micro view on home equity withdrawal and its determinants. Evidence from Dutch households. Discussion Papers in Economics 2010-2

Abstract

Home equity is the most important part of a household portfolio, but only recently has it become more accessible through innovations in the mortgage market and financial deregulation. This study looks at the factors driving home equity withdrawal on a household level using Dutch survey data and assesses to which degree different theoretical predictions can be empirically supported. There is little evidence that equity withdrawal is used as a buffer against adverse income shocks, with financial motives and life-cycle effects likely to dominate a household’s decision. Finally, the study provides first evidence of the impact of changing supply side conditions on home equity withdrawal.

• Item Type: Paper
• Form of publication: Preprint
• Keywords: home equity withdrawal, Dutch housing market, consumption models
• Faculties: Economics; Economics > Munich Discussion Papers in Economics; Economics > Munich Discussion Papers in Economics > Micro-Economics
• Subjects: 300 Social sciences > 300 Social sciences, sociology and anthropology; 300 Social sciences > 330 Economics
• JEL Classification: D1, D9, E2, E4, G2
• Language: English

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