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Housing Assets In The Bank of Italy’s Survey Of Household Income And Wealth

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Abstract

Availability of data on the amount and composition of wealth is of signal importance in order to interpret the patterns of household consumption and savings in the light of a life-cycle theory or other interpretative schemas keyed to the source and destination of accumulated wealth and the significance of intergenerational transfers. More precise measurement of household wealth is, moreover, the prerequisite to better quantification of the income components that it generates. These components generally are subject to underestimation of the same order as the corresponding components of wealth.
... The method we borrow from Cannari and D'Alessio (1990) to adjust income from rents relies on the assumption that the empirical distribution of the number of dwellings not used as a principal residence recorded in the SHIW is a discrete Poisson distribution conditional 6 See the appendix for details on the methodology. on a set of characteristics. ...
... Conversely, self-reported real and financial wealth from household surveys is usually found to be affected by underreporting with respect to administrative records; increasing complexity of households financial portfolios and the presence of dwellings not used as principal residence make the respondents' task more difficult, especially among the older segment of the population. Papers dealing with this issue in the SHIW are Cannari and D'Alessio (1990), D'Aurizio et al. (2006), Neri and Zizza (2010). ...
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