Time: Thursday, March 23rd 15:00-16:00

Venue: Tencent Conference 133-540-594

Topic: Intergenerational effects of housing wealth: parental housing return and children's home purchase .

Speaker Introduction: FANG Shuai, PhD in Economics, University of Groningen, The Netherlands. Research dierction: family finance, regional economics.

Organizer: Bay Area International Business School, Beijing Normal University

Report Content:

Focusing on the role of experiences transmitted by social networks in household decision making, this paper explores whether people's home purchase decisions are influenced by their parents' housing investment returns. Using nationwide household and housing registry data for the Netherlands, the paper finds that a 1 percentage point increase in parental investment returns leads to a 0.1 percentage point increase in their adult children's odds of purchasing a home. This result remains robust after accounting for family characteristics, timing of home purchase, and choice of location. The paper concludes that the reason for this intergenerational effect is that parents' housing investment returns change their adult children's expectations of the real estate market, not just intergenerational asset gifting.