Working Paper: CEPR ID: DP17889
Authors: Guillaume Vuillemey
Abstract: I show that home ownership decisions across countries and individuals are shaped by a cultural heritage from agriculture. For centuries, dominant assets in pre-industrial economies were either land or cattle. Consequently, the type of farming prevailing locally shaped preferences and believes about the relative value of immovable and movable assets. This cultural heritage had long-lasting consequences. Today, individuals originating from societies with a history of crop agriculture -- where the dominant asset was land -- are more likely to be homeowners. For identification, I rely both on home ownership decisions of second-generation immigrants in the US and on instrumental variables.
Keywords: homeownership; culture; persistence; agriculture
JEL Codes: G51
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| cultural heritage from agriculture (N50) | home ownership decisions (R21) |
| crop agriculture (cropshare) (Q15) | home ownership rates (R21) |
| parents' country of origin (crop agriculture) (J43) | home ownership of second-generation immigrants (R21) |
| cultural heritage from agriculture (N50) | home ownership probability (R21) |
| cropshare (Q15) | home ownership probability (R21) |