Taking advantage of a unique match of individual and regional level data, we estimate the effect of home value on the composition of financial assets among a sample of German homeowners aged 50 + . Home values are found to be positively correlated with the probability of owning stocks and mutual funds and with the proportion of the portfolio invested in these assets. IV estimates suggest that on average 100k euro of housing wealth increases the probability of owning stocks or mutual funds by about 3 percentage points and the proportion of these in the portfolio by 1.5 p.p.
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Garten et al. (2024) studied this question.
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