1 Department of Economics, Faculty of Social Sciences, Københavns Universitet2 KORA3 Økonomisk Institut, Department of Economics, Faculty of Social Sciences, Københavns Universitet4 Økonomisk Institut, Department of Economics, Faculty of Social Sciences, Københavns Universitet
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.
Scandinavian Journal of Economics, 2013, Vol 115, Issue 4, p. 1020-1045
Faculty of Social Sciences; Empirical analysis; house purchase; intergenerational transfers