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Does Access to Housing Wealth Relax Liquidity Constraints for Entrepreneurs? : Evidence from Sweden

Hansson, Åsa LU (2026) In Nordic Journal of Surveying and Real Estate Research 19(1). p.85-109
Abstract
Liquidity constraints are often seen as a barrier to entrepreneurship, with many relying on personal or informal capital to start a business. This paper examines whether increased access to equity ─ via rising value of owner-occupied housing ─ affects the likelihood of business entry. Using detailed Swedish tax return data and exploiting the 2008 property tax reform as a natural experiment, we analyze how changes in house prices influence entrepreneurial activity. While higher housing prices correlate with business ownership and entry, this relationship disappears when isolating the causal effect of the tax reform. These findings contrast earlier findings and suggest that the value of owner-occupied housing proxy for individual... (More)
Liquidity constraints are often seen as a barrier to entrepreneurship, with many relying on personal or informal capital to start a business. This paper examines whether increased access to equity ─ via rising value of owner-occupied housing ─ affects the likelihood of business entry. Using detailed Swedish tax return data and exploiting the 2008 property tax reform as a natural experiment, we analyze how changes in house prices influence entrepreneurial activity. While higher housing prices correlate with business ownership and entry, this relationship disappears when isolating the causal effect of the tax reform. These findings contrast earlier findings and suggest that the value of owner-occupied housing proxy for individual characteristics rather than easing liquidity constraints, indicating that such constraints are not a major barrier to entrepreneurship in Sweden. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Nordic Journal of Surveying and Real Estate Research
volume
19
issue
1
pages
85 - 109
publisher
The Finnish Society of Surveying Sciences
ISSN
1459-5877
DOI
10.30672/njsr.163282
language
English
LU publication?
yes
id
b51441a9-8263-446b-983c-196672780eca
date added to LUP
2026-07-05 21:45:11
date last changed
2026-08-10 13:15:53
@article{b51441a9-8263-446b-983c-196672780eca,
  abstract     = {{Liquidity constraints are often seen as a barrier to entrepreneurship, with many relying on personal or informal capital to start a business. This paper examines whether increased access to equity ─ via rising value of owner-occupied housing ─ affects the likelihood of business entry. Using detailed Swedish tax return data and exploiting the 2008 property tax reform as a natural experiment, we analyze how changes in house prices influence entrepreneurial activity. While higher housing prices correlate with business ownership and entry, this relationship disappears when isolating the causal effect of the tax reform. These findings contrast earlier findings and suggest that the value of owner-occupied housing proxy for individual characteristics rather than easing liquidity constraints, indicating that such constraints are not a major barrier to entrepreneurship in Sweden.}},
  author       = {{Hansson, Åsa}},
  issn         = {{1459-5877}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{85--109}},
  publisher    = {{The Finnish Society of Surveying Sciences}},
  series       = {{Nordic Journal of Surveying and Real Estate Research}},
  title        = {{Does Access to Housing Wealth Relax Liquidity Constraints for Entrepreneurs? : Evidence from Sweden}},
  url          = {{http://dx.doi.org/10.30672/njsr.163282}},
  doi          = {{10.30672/njsr.163282}},
  volume       = {{19}},
  year         = {{2026}},
}