Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154105
Authors: 
Mathä, Thomas Y.
Porpiglia, Alessandro
Ziegelmeyer, Michael
Year of Publication: 
2014
Series/Report no.: 
ECB Working Paper 1672
Abstract: 
Crossing borders, be it international or regional, often go together with price, wage or indeed wealth discontinuities. This paper identifies substantial wealth differences between Luxembourg resident households and cross-border commuter households despite their similar incomes. The average (median) net wealth difference is estimated to be €367,000 (€129,000) and increases for higher percentiles. Using several different regression and decomposition techniques, spatial (regional) differences in real estate price developments, and thus differences in accumulated nominal capital gains are shown to be one main driving factor for these wealth differences. Other factors contributing to the observed wealth differences are differences in age, income, education and other household characteristics.
Subjects: 
cross-border commuting
household survey
real estate price dynamics
wealth
JEL: 
D31
J61
F22
R23
R31
Document Type: 
Working Paper

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