Household Finance at the Origin: Home Ownership as a Cultural Heritage from Agriculture
Abstract
Abstract I show that home ownership decisions across countries and individuals are shaped by a cultural heritage from agriculture. For centuries, dominant assets in preindustrial economies were either land or cattle. Consequently, the type of farming prevailing locally shaped preferences and beliefs 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 United States and on an instrument.
Fields of Study & Subjects
Housing Market and Economics
Culture
Economy
and Development Studies
Microfinance and Financial Inclusion
Publication details
- Journal / source
- Journal of Financial and Quantitative Analysis
- Publisher
- Cambridge University Press (CUP)
- Volume
- 61
- Issue
- 6
- Pages
- 1–29
- Publication date
- 6 May 2026
- Language
- EN