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Examination of Applicants for Home Purchase Subsidy for Families in Terms of Prior Commitment to Having Children and Extent of Property Acquisition, Based on the Data of a Credit Institution

Author

Listed:
  • Kata Plochl

    (Sopron University)

  • Csilla Obadovics

    (Sopron University)

Abstract

By examining a credit institution's database for the period 2016-2020, the authors aimed to discover the extent to which Home Purchase Subsidy (HPS) for families applicants use the subsidy received in return for committing to having children in Hungary. The current study also examines which social groups the HPS provides essential assistance to with home purchasing, and at which income level and property value the subsidy motivates the purchase of a second home. Using cluster analysis, the authors found that groups with modest incomes and housing are the most likely to commit to having children in advance. Though the subsidy assists this group the most with housing, the amount received from the subsidy is small. Moreover, the current study revealed that 8 per cent of applicants used the subsidy to purchase a second property.

Suggested Citation

  • Kata Plochl & Csilla Obadovics, 2021. "Examination of Applicants for Home Purchase Subsidy for Families in Terms of Prior Commitment to Having Children and Extent of Property Acquisition, Based on the Data of a Credit Institution," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 20(3), pages 80-109.
    • Handle: RePEc:mnb:finrev:v:20:y:2021:i:3:p:80-109
    as

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    File URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-20-3-st4-plochl-obadovics.pdf
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    References listed on IDEAS

    as
    1. Gergely Kiss & Gábor Vadas, 2005. "The Role of the Housing Market in Monetary Transmission," MNB Background Studies (discontinued) 2005/3, Magyar Nemzeti Bank (Central Bank of Hungary).
    2. Sági, Judit & Tatay, Tibor & Lentner, Csaba & Neumanné Virág, Ildikó, 2017. "Certain Effects of Family and Home Setup Tax Benefits and Subsidies," Public Finance Quarterly, Corvinus University of Budapest, vol. 62(2), pages 171-187.
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    More about this item

    Keywords

    HPS; housing subsidy; family support; housing need; childbearing willingness;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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