House Price Cycles, Wealth Inequality and Portfolio Reshuffling by Clara Martínez-Toledano

Join us for the latest Applied Economics Research Seminar Series event, Autumn Term 2022.

Clara Martínez-Toledano from Imperial College Business School will present this seminar on House Price Cycles, Wealth Inequality and Portfolio Reshuffling.

Abstract

This paper studies the determinants of wealth inequality during housing booms and busts. I examine two episodes over the last four decades in Spain by combining fiscal data with household surveys and national accounts. I find that heterogeneity in capital gains is the main driver behind the fall in wealth inequality during housing booms, while heterogeneity in saving rates and portfolio choices are the main explanatory forces of the rise in wealth concentration during housing busts. Top wealth holders are better at timing the market and reshuffling their portfolios, as they appear to be subject to less portfolio adjustment frictions.

The seminar will begin with a presentation and will end with a Q and A session.

It will be held in the Economics Common Room at 2pm on Thursday 24th November. This event is open to all levels of study and is also open to the public. To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Applied Economics Research Seminar Series.