Interactive Paper Companion

Where you can buy shapes how much housing wealth you earn.

Decomposes the P90−P10 total wealth-return gap into asset-level contributions, and each asset's contribution into composition, within, and interaction components. Companion to Appendix F of Housing Capital Gains across the Income Distribution by Claes Bäckman, Walter D'Lima, and Natalia Khorunzhina.

Paper Headline 1.36 pp

Higher annualized housing capital gains for P90 versus P10 buyers.

10-Year Gap 14.6%

Cumulative difference over a decade in the paper.

Core Mechanism Location

The paper argues that the gradient is largely explained by where households buy.

01

Portfolio Decomposition Lab

Examine how the returns to different asset classes affect heterogeneity in returns. Switch the share source, financial return calibration, and compounding horizon to see how the P90-P10 wealth-return gap moves.

Share source
Financial return calibration

Total contribution to the P90-P10 gap

Asset contribution equals P90 share times P90 return minus the P10 analogue.

Composition, within, interaction

The three terms in the appendix, using P10 as the baseline.

How to read the controls

Passive uses country-internal risky shares times stock and safe returns; the other two use external financial-return gradients imported from the literature.

02

Housing Return Explorer

Scrub across income deciles and holding periods to see how the housing-gains gradient implied by the paper maps into annualized and compounded returns.

Annualized real housing capital gains

Decile midpoint calibration from the Stata data builder.

Compounded gain over the selected horizon

The same annualized series translated into buy-and-hold growth.

03

Portfolio Mix by Decile

Compare the Danish and SCF share profiles that flow into the decomposition. The bars show gross-asset weights; the line tracks the risky share within financial wealth.

Asset mix and risky financial share

Click a decile bar to pin the detail card. Each stacked bar shows the portfolio composition for that income decile.

  • Housing share
  • Financial share
  • Pension share
  • Risky share in financial wealth

Decile 10 snapshot

Current source: Danish shares

04

Data sources

Each preset combines a source for portfolio shares (P10, P90 of the income distribution) with a source for asset returns by income rank.

Portfolio shares

Danish 2014–2019: administrative registers from Statistics Denmark, averaged over 2014–2019. SCF 2013: Survey of Consumer Finances, 2013 wave.

Housing returns

Estimated in this paper from ~250,000 Danish repeat-sale transactions (1996–2022), using the linear fit r(i) = 0.036 + 0.0017·(i−5.5) over income deciles i = 1,…,10, evaluated at i=1 (P10) and i=10 (P90).

Financial returns

Fagereng et al.: Norwegian administrative data on returns to financial wealth across the financial wealth distribution (Fagereng, Guiso, Malacrino, and Pistaferri, 2020). Bach et al.: Swedish administrative data (Bach, Calvet, and Sodini, 2020). Passive: country-internal mix rfin,i=αirstock+(1−αi)rsafe, using OMXC20+10y bond for Denmark (αP10=0.07, αP90=0.27 from Danish registers) and S&P 500+10y T for the SCF (α from SCF risky-asset shares). Captures only the composition channel; gives a lower bound on the financial-wealth gap.

Pension returns

Held flat at 4.47% for both percentiles.

Inputs are editable: click a preset to load it, then adjust any cell to explore alternative scenarios.