Household wealth
What we can learn
from micro data registers
Gitte Frej Knudsen
Søren Brodersen
Household wealth
The use of micro based registers
Explaining variables
at micro level
Registers
Individuals
• Income
• Social status
• Family type
• Education
• Working place
Micro based registers in
the wealth project
• Dwellings
• Household cars
Enterprises
• Activity code
• Number of employees
• Turnover
Other micro based
registers
• Debt
• Financial assets
2
Use
Research
Statistics
Analysis
Example:
Analysis of owner
occupiers’ net wealth
Household wealth
Main results
Share of households’ real assets
95,5%
4,2%
0,3%
+
Households’ real assets
Billion DKK (current prices)
2004
2005
2006
2007
2008
2009
Owner occupied dwellings
2.446
2.837
3.107
3.913
4.000
3.561
Co-operative dwellings
134
152
253
228
244
208
Housing assets, total
2.580
2.989
3.361
4.141
4.244
3.769
GDP
1.466
1.545
1.632
1.691
1.737
1.660
176
193
206
245
244
227
Housing assets, % of GDP
Household cars
Yachts
Aircrafts owned by households
Real assets, total
3
132
188
10
1
4.443
Household wealth
Register: Market value for owner occupied dwellings
1. Geography dimension
Real estate value register
Real estate no.
Official real estate valuation
(tax value)
Merging
Key: Real estate no.
Building and estate register
Real estate no.
Postal code
Municipal code
Region
2. Real estate sales
Official valuation and
geography dimension
Real estate no.
Official real estate valuation
Postal code, municipality, region
5
Merging
Key: Real estate no.
Estate sales register
Real estate no.
Actual sale values
Household wealth
Register: Market value for owner occupied dwellings
3. Sector delimitation: Household sector
Owners of real estate
Real estate no.
Personal ID no.
Business register no.
Owner share
Business register
Business register no.
Type of ownership
Filter: Persons and sole
proprietorships
Owners belonging to the
household sector
Real estate no.
Personal ID no.
Business register no.
Owner share
4. Official estate valuations broken down by individuals and geography
Official real estate valuations
Real estate no.
Official estate valuations
Postal code, municipality, region
Actual sale values
6
Merging (basic register)
Key: Real estate no.
Owners belonging to the
household sector
Real estate no.
Personal ID no.
Business register no.
Owner share
Household wealth
Estimation of actual market values for owner occupied dwellings
1. Estimation of coefficients relating actual sale values
to official real estate valuations
J
Market val ue coefficien t k 
 (sale values )
J 1
j ,k
J
 (Official
J 1
real estate valuation ) j ,k
k is a geographical area, e.g. a postal code
j is an owner occupied dwelling (type j), traded in the geographical area k
2. Estimation of market value at micro level
Market value = Official estate value * market value coefficient
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Household wealth
Estimation of market values for owner occupied dwellings
One family houses only
Coefficients of actual sales values to official real estate values
1,30
West denmark
Copenhagen region
Zealand
1,20
1,10
1,00
0,90
0,80
2006
8
2007
2008
2009
Household wealth
Market values for co-operative dwellings
Challenges
•
•
No central registration of owners
No official real estate valuation of co-operative dwellings
Assumptions for estimation of market values at
micro level
•
•
•
All adults at the same address own equal shares of the co-operative dwelling
The total real estate value owned by the co-operative is distributed proportionally
among dwellings according to square meters
Coefficients between actual sales values and official estate value are estimated at
regional level only
Conclusion
Estimates suffer from incomplete information for ownership and actual sales values
unlike register information on owner occupied dwellings
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Household wealth
Comparison between micro based market value and national accounts
data on household real estate.
4.500 Billion DKK
4.000
3.500
3.000
2.500
2.000
1.500
1.000
2004
2005
2006
2007
2008
2009
Market value, buildings and land
National accounts, buildings
National accounts, buildings and land
Note: Real estate of households includes dwellings and business real estate of
household sector enterprises.
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Households’ real assets
Register: Market value for household cars
1. Sector delimitation: Household sector
Vehicle register
Owners:
Personal ID no.
Business reg. no.
Vehicle key number
Manufacturer
Model, variant, age
… other technical data
2. Market value
Price register from
Danish Motorcar Society
Vehicle key number
Age
Market value
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Business register
Business register no.
Type of ownership
Filter: Persons and sole
proprietorships
Imputation programme
Impute market value
when no match is found
Merging
Keys: Vehicle key number, age
Owners belonging to the
household sector
Personal ID no.,
Business reg. no.
Vehicle key number
Manufacturer
Model, variant, age
… other technical data
Owners belonging to the
household sector
Personal ID no.,
Business reg. no.
Vehicle key number
Manufacturer
Model, variant, age
… other technical data
Households’ real assets
Register: Market value for household cars
3. Challenges
•
•
•
The Price register from Danish Motorcar Society contains only cars
No prices for cars older than 20 years
10 percent of the household cars have no match between the Price register and the
Vehicle register
4. Assumptions for estimation of market values at micro level
•
•
•
No market value for household vans, motor cycles, mobile homes etc.
All cars older than 20 years have a market value equal to zero.
Imputed market values for 10 percent of the household cars
5. Explaining variables
Merged Vehicle register
with market value
Owner
Manufacturer
Model, variant, age etc.
Market value
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Merging
Keys: Personal ID no.
Business reg. no.
Registers with explaining
variables (Statistics Denmark)
Geographical localisation
Composition of the owner's family
Family income
Housing condition
…other explaining variables
Household wealth
Household wealth 2008
(in billion DKK)
Household sector
National accounts S.14
Financial assets
Liabilities
Currency
AF.21
30
Deposits
AF.22
765
492
Securities other than shares
AF.3
159
206
Quoted shares
AF.511
106
122
Unquoted shares
AF.512
232
Other equity
AF.513
161
Mutual funds shares
AF.52
206
Insurance - technical reserves
AF.6
1.781
Other accounts receivable
AF.7
61
Securities other than shares
AF.3
19
19
Loans
AF.4
2.315
2.243
Other accounts payable
AF.7
154
Net financial wealth
Real assets
16
1.013
-1.426
Dwellings and other real estate
1.707*
4.244
Motor vehicles
245**
188**
Yachts and aircrafts owned
by households
Net Wealth
13
Aggregate micro data
11
2.965
3.017
* Excl. land
** Only Cars
Household wealth
Summary
•
Households’ real assets estimated at micro level amounts at the end of
2009 to approximately 2.4 times GDP
•
Micro registers can be used for distribution analysis
(by income, gender, age, family size, occupation etc.)
•
Reliable estimates of market values for owner occupied
dwellings at micro and macro level
•
Estimates for co-operative dwellings are less reliable but still useful
14