Home-ownership and entrepreneurship

Overman, Henry G. ORCID: 0000-0002-3525-7629 (2012) Home-ownership and entrepreneurship. Spatial Economics Research Centre Blog (25 Apr 2012). Website.

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Abstract

It's sometimes argued that housing wealth provides a source of equity for entrepreneurs that helps explain why business start-ups may be higher in areas with high house prices. But these arguments ignore the fact that home ownership (especially if it comes with lots of leverage via a high loan to value mortgage) is risky and that homeowners might therefore avoid other risky activities (like entrepreneurship). An interesting new paper by SERC colleagues Philippe Bracke, Christian Hilber and Olmo Silva suggests that this is indeed the case - purchasing a home reduces the likelihood of starting entrepreneurial activity by 20-25%.

Item Type:	Online resource (Website)
Official URL:	http://spatial-economics.blogspot.co.uk/
Additional Information:	© 2012 The Author(s)
Divisions:	Geography & Environment Spatial Economics Research Centre Centre for Economic Performance What Works Centre
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HT Communities. Classes. Races J Political Science > JC Political theory J Political Science > JN Political institutions (Europe) > JN101 Great Britain J Political Science > JS Local government Municipal government
Date Deposited:	29 Jun 2017 09:04
Last Modified:	11 Dec 2024 13:09
URI:	http://eprints.lse.ac.uk/id/eprint/82702

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