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Differences in Perceptions of the Housing Cost Burden Among European Countries

Author

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  • Marco Brandolini
  • Federica Coroneo
  • Elena Giarda
  • Cristiana Moriconi
  • Sarah Grace See

Abstract

In this article we perform a comparative analysis of the self-reported perception of the housing cost burden as an indicator of potential financial distress. We employ EU-SILC data on five European countries – France, Germany, Italy, Spain and the UK – for years from 2005 to 2010. Wide differences emerge between Germany, France and the UK on the one hand, and Italy and Spain on the other. Estimation of the housing cost burden by means of logit models allows us to relate the probability of a high burden to both micro and macro-economic variables and to identify differences among countries. As for socio-economic variables, our results reveal the existence of life-cycle effects and a lower burden for homeowners. As for aggregate variables, GDP growth and higher consumer confidence contribute to reducing the probability of a high burden, whereas high levels of unemployment and inequality contribute to increase it. At country level, we observe differences in the size of the impact of the explanatory variables on the probability of perceiving a high burden, especially for covariates such as age, homeownership status and education. JEL classification numbers: D12, D14, C25. Keywords: Housing cost burden, Perceived financial distress, Logit models, EU-SILC.

Suggested Citation

  • Marco Brandolini & Federica Coroneo & Elena Giarda & Cristiana Moriconi & Sarah Grace See, 2022. "Differences in Perceptions of the Housing Cost Burden Among European Countries," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 12(4), pages 1-5.
    • Handle: RePEc:spt:apfiba:v:12:y:2022:i:4:f:12_4_5
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    References listed on IDEAS

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    Cited by:

    1. Marianna Brunetti & Elena Giarda & Costanza Torricelli, 2016. "Is Financial Fragility a Matter of Illiquidity? An Appraisal for Italian Households," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 628-649, December.

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    More about this item

    Keywords

    housing cost burden; perceived financial distress; logit models; eu-silc.;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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