TY  - BOOK
AU  - Bernstein,Asaf
AU  - Koudijs,Peter
ED  - National Bureau of Economic Research.
TI  - The Mortgage Piggy Bank: Building Wealth through Amortization 
T2  - NBER working paper series
PY  - 2021///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - March 2021; Hardcopy version available to institutional subscribers
N2  - Mortgage amortization schedules are illiquid savings plans comparable in size to pension programs; however, little is known about their effects on wealth accumulation. Using individual administrative data and plausibly exogenous variation in the timing of home purchase (ex. childbirth-driven) around a 2013 Dutch reform, we find a near one-for-one rise in net worth for each dollar of amortization. Households leave other savings and liabilities unchanged, and instead increase labor supply and reduce consumption. Effects hold even for regular savers and older households. This has important macroprudential implications and suggests homeownership financed via amortizing mortgages is instrumental for household wealth building
UR  - https://www.nber.org/papers/w28574
UR  - http://dx.doi.org/10.3386/w28574
ER  -