Asset valuations across many asset classes have increased substantially over the last several decades. While these rising valuations had important effects on the distribution of wealth, little is known regarding their redistributive effects in terms of welfare. To make progress on this question, we develop a sufficient statistic for the money-metric welfare gain of deviations in asset valuations. This welfare gain depends on the present value of an individual’s net asset sales rather than asset holdings: higher asset valuations benefit prospective sellers and harm prospective buyers. We estimate this quantity using panel microdata covering the universe of financial transactions in Norway from 1994 to 2019. We further demonstrate how to adapt our baseline statistic to account for important considerations, such as incomplete markets and collateral constraints. We find that the rise in asset valuations had large redistributive effects: it redistributed from the young to the old and from the poor to the wealthy.
Cao, Jin; Cui, Chao, Dinger, Valeriya, Holm, Martin B. & Kang, Shulong (2024)
Identifying the Depreciation Rate of Durables from Marginal Spending Responses
We use sizable lottery prizes in Norwegian administrative panel data to explore how transitory income shocks are spent and saved over time, and how households’ marginal propensities to consume (MPCs) vary with household characteristics and shock size. We find that spending peaks in the year of winning and gradually reverts to normal within five years. Controlling for all items on households’ balance sheets and characteristics such as education and income, it is the amount won, age, and liquid assets that vary systematically with MPCs. Low-liquidity winners of the smallest prizes (around USD 1,500) are estimated to spend all within the year of winning. The corresponding estimate for high-liquidity winners of large prizes (USD 8,300-150,000) is slightly below one half. While conventional models will struggle to account for such high MPC levels, we show that a two-asset life-cycle model with a realistic earnings profile and a luxury bequest motive can account for both the time profile of consumption responses and their systematic co-variation with observables.
Carroll, Christopher D.; Holm, Martin Blomhoff & Kimball, Miles (2021)
We provide a new estimate of household-level housing wealth in Norway between 1993 and 2015 using an ensemble machine learning method on housing transaction data. The new housing wealth measure is an improvement over existing data sources for two reasons. First, the model outperforms previously applied regression models in out-of-sample prediction precision. Second, we extend the sample of estimated housing wealth by including cooperative units, non-id apartments, and cabins.
Holm, Martin Blomhoff; Paul, Pascal & Tischbirek, Andreas (2021)
The Transmission of Monetary Policy under the Microscope
How do liquidity constraints affect households? This is a well-researched subject with remarkably few theoretical results. This paper bridges this gap by providing a closed form expression for consumption with liquidity constraints for a wide class of utility functions (HARA). Using this expression, I prove that the consumption function is strictly concave in wealth if a relevant liquidity constraint exists. Moreover, households respond to a tightening of the liquidity constraint by reducing consumption, becoming more sensitive to wealth changes, and having a “more” concave consumption function in wealth. These results thus provide theoretical underpinnings for how contractions in credit supply affect households
Effekten av inntektsusikkerhet på husholdningenes sparing i Norge etter finanskrisen
(6) , s. 20- 25.
Holm, Martin B. & Jasinski, Marek (2025)
Uklokt å sette en grense for oljepengebruken
[Kronikk]
Holm, Martin B. (2025)
Hvor raskt bør inflasjonen ned?
[Kronikk]
Holm, Martin B. (2025)
Det er på tide å fjerne avdragskravet
[Kronikk]
Holm, Martin B. (2024)
Tid for oppdatert regel for oljepengebruk – må tåle kriser bedre
[Kronikk]
Holm, Martin B. (2024)
Er Norges Bank opptatt av sysselsetting?
[Kronikk]
Holm, Martin B. (2024)
Hvor raskt bør inflasjonen ned?
[Kronikk]
Holm, Martin B. (2024)
Det er på tide å fjerne avdragskravet
[Kronikk]
Holm, Martin B.; Natvik, Gisle James, Kinnerud, Karin & Storesletten, Kjetil (2024)
På høy tid å justere avdragskravet
[Kronikk]
Holm, Martin B. & Jasinski, Marek (2024)
Uklokt å sette en grense for oljepengebruken
[Kronikk]
Holm, Martin B. (2024)
Vi er ferdig med inflasjonen. Renten kan gå ned
[Kronikk]
Holm, Martin B. & Hjort, Jonas Krabbe (2024)
Hvor kostbar blir temperaturstigningen?
[Kronikk]
Holm, Martin B. (2024)
Kronekursen og religion
[Kronikk]
Holm, Martin B. & Hov, Marius Nyborg (2023)
Bør tallfeste sine avveininger
[Kronikk]
Holm, Martin B. (2023)
Dagsnytt 18
[Kronikk]
Holm, Martin B. & Natvik, Gisle James (2023)
Hvorfor ikke lavere skatter?
[Kronikk]
Holm, Martin B. (2023)
Bør handlingsregelen justeres?
[Kronikk]
Holm, Martin B. (2023)
Stiger prisene som følge av grådighetsinflasjon?
[Kronikk]
Holm, Martin B. (2023)
Gode og dårlige grunner til å endre handlingsregelen
[Kronikk]
Holm, Martin B. (2023)
Debatten
[Kronikk]
Holm, Martin B. & Martinsen, Kjetil (2023)
2022 ble et krevende år for pengepolitikken
[Kronikk]
Holm, Martin B. (2023)
Bør oljefondet gå inn i unoterte aksjer?
[Kronikk]
Holm, Martin B. (2023)
Debatten, NRK
[Kronikk]
Holm, Martin B. (2022)
Politisk Kvarter, NRK
[Kronikk]
Holm, Martin B. & Hagedorn, Marcus (2022)
Vedums unødvendige nedgangstider
[Kronikk]
Holm, Martin B. (2022)
Masons forslag behandler kun symptomer
[Kronikk]
Holm, Martin B. (2022)
Nyhetsmorgen, NRK
[Kronikk]
Holm, Martin B. & Hagedorn, Marcus (2022)
Strømstøtten til bedrifter kan bidra til lavere prisvekst og renter
[Kronikk]
Holm, Martin B. (2022)
Skal renten virkelig så mye opp som Norges Bank sier?
[Kronikk]
Holm, Martin B. (2022)
Helgemorgen, NRK
[Kronikk]
Holm, Martin B. & Hagedorn, Marcus (2022)
Altfor mange har en jobb, sier Wolden Bache og Slagsvold Vedum
[Kronikk]
Holm, Martin B. (2022)
Vinteren kommer – køene ved landets fattighus varsler trange tider for mange fler
[Kronikk]
Holm, Martin B. (2020)
Tre merkverdigheter i debatten om formuesskatten
[Kronikk]
Holm, Martin B.; Jamilov, Rustam, Jasinski, Marek & Nenov, Plamen (2025)
Estimating the Elasticity of Intertemporal Substitution using Dividend Tax News
[Lecture]. Event
Holm, Martin B.; Jamilov, Rustam, Jasinski, Marek & Nenov, Plamen (2025)
Estimating the Elasticity of Intertemporal Substitution using Dividend Tax News
[Lecture]. Event
Natvik, Gisle James; Holm, Martin Blomhoff, Fagereng, Andreas, Gulbrandsen, Magnus, Kinnerud, Karin & Ellingsrud, Sigmund (2024)
Monetary Policy and Household Indebtedness – How Important are Fisher and Tilt Effects?
[Lecture]. Event
Holm, Martin Blomhoff; Jamilov, Rustam, Jasinski, Marek & Nenov, Plamen (2024)
Estimating the Elasticity of Intertemporal Substitution using Dividend Tax News Shocks
[Professional Article].
Holm, Martin B. (2024)
Inflation
[Lecture]. Event
Holm, Martin B.; Heimdal, Knut Ward & Kordt, Amund H. (2024)
Local fiscal multipliers: Evidence from Norway
[Conference Lecture]. Event
We estimate local government spending multipliers using administrative data on municipalities in Norway. Based on identified shocks we estimate the dynamic response of gross production across geographical units and sectors of the economy. We find that the multipliers increase with the home bias in consumption. The results indicate that spending multiplier is closely linked to import leakages, which are reduced as the size of the economy increases. We observe that the public sector is the first to be affected by public spending, before the multiplier builds up in the private sector. We also show that similar results can be obtained by using a structural vector autoregressive models (SVAR) with various identifying assumptions.
Natvik, Gisle James; Fagereng, Andreas, Holm, Martin Blomhoff & Moll, Benjamin (2023)
Saving Behavior Across the Wealth Distribution
[Lecture]. Event
Natvik, Gisle James; Fagereng, Andreas, Holm, Martin Blomhoff & Moll, Benjamin (2023)
Saving Behaviour Across the Wealth Distribution
[Lecture]. Event
Tretvoll, Håkon; Crawley, Edmund & Holm, Martin Blomhoff (2023)
A Parsimonious Model of Idiosyncratic Income
[Conference Lecture]. Event
Edmund, Crawley; Holm, Martin B. & Tretvoll, Håkon (2022)
A Parsimonious Model of Idiosyncratic Income
[Conference Lecture]. Event
Crawley, Edmund; Holm, Martin B. & Tretvoll, Håkon (2022)
A Parsimonious Model of Idiosyncratic Income
[Conference Lecture]. Event
Fagereng, Andreas; Gomez, Matthieu, Gouin-Bonenfant, Emilien, Holm, Martin B., Moll, Benjamin & Natvik, Gisle James (2022)
Asset-Price Redistribution
[Conference Lecture]. Event
Crawley, Edmund; Holm, Martin B. & Tretvoll, Håkon (2022)
A Parsimonious Model of Idiosyncratic Income
[Conference Lecture]. Event
Holm, Martin Blomhoff; Haugland, Kjersti & Sharon, Zollner (2022)
Norges Bank Watch 2022
[Report Research].
Fagereng, Andreas; Gulbrandsen, Magnus Andreas Haare, Holm, Martin B. & Natvik, Gisle James (2022)
How Does Monetary Policy Affect Household Indebtedness?
[Conference Lecture]. Event
Crawley, Edmund; Holm, Martin B. & Tretvoll, Håkon (2022)
A Parsimonious Model of Idiosyncratic Income
[Conference Lecture]. Event
Crawley, Edmund; Holm, Martin B. & Tretvoll, Håkon (2022)
A Parsimonious Model of Idiosyncratic Income
[Conference Lecture]. Event
Crawley, Edmund; Holm, Martin B. & Tretvoll, Håkon (2022)
A Parsimonious Model of Idiosyncratic Income
[Conference Lecture]. Event
Holm, Martin B.; Paul, Pascal & Tischbirek, Andreas (2022)
Monetary Transmission under the Microscope
[Conference Lecture]. Event
Fagereng, Andreas; Gomez, Matthieu, Gouin-Bonenfant, Emilien, Holm, Martin B., Moll, Benjamin & Natvik, Gisle James (2022)
Asset-Price Redistribution
[Conference Lecture]. Event
Fagereng, Andreas; Gomez, Matthieu, Gouin-Bonenfant, Emilien, Holm, Martin B., Moll, Benjamin & Natvik, Gisle James (2022)
Asset-Price Redistribution
[Conference Lecture]. Event
Crawley, Edmund; Holm, Martin B. & Tretvoll, Håkon (2022)
A Parsimonious Model of Idiosyncratic Income
[Conference Lecture]. Event
Fagereng, Andreas; Gomez, Matthieu, Gouin-Bonenfant, Emilien, Holm, Martin B., Moll, Benjamin & Natvik, Gisle James (2022)
Asset-Price Redistribution
[Conference Lecture]. Event
Fagereng, Andreas; Holm, Martin Blomhoff, Gulbrandsen, Magnus & Natvik, Gisle James (2021)
How Does Monetary Policy Affect Household Indebtedness?
[Professional Article]. 2021(5) , s. 1- 24.
Natvik, Gisle James; Fagereng, Andreas, Moll, Benjamin & Holm, Martin Blomhoff (2021)
Saving Behavior across the Wealth Distribution: The Importance of Capital Gains
[Lecture]. Event
Berg, Oddmund; Brasch, Thomas Rolf Lydersen Lystad von, Cappelen, Ådne, Holm, Martin Blomhoff, Raknerud, Arvid, Tretvoll, Håkon & Vigtel, Trond Christian (2020)
Drivkrefter bak svak etterspørsel i økonomien: Utredning for Sysselsettingsutvalget
[Report Research].
Denne rapporten er skrevet på oppdrag for Sysselsettingsutvalget.
Sysselsettingsutvalget skal analysere utviklingen i sysselsettingen i Norge og
foreslå tiltak for å øke sysselsettingen. Arbeidet er delt opp i to faser. Fase én var
ferdig da ekspertgruppen la fram sine forslag for økt sysselsetting 28. mars 2019. I
fase to er utvalget utvidet og inkluderer partene i arbeidslivet. Fase to begynte 5.april 2019. I denne rapporten analyseres hvordan markedsmakt og ulikhet kan påvirke den økonomiske aktiviteten, herunder sysselsettingen.
Holm, Martin Blomhoff; Fagereng, Andreas, Guiso, Luigi & Pistaferri, Luigi (2020)
K-returns to Education
[Professional Article].
We exploit a school reform that increased the length of compulsory schooling in Norway in the 1960s to study the causal effect of formal general education on returns on wealth (k-returns).
OLS estimates reveal a strong, positive and statistically significant correlation between education and returns on individual net worth. This effect disappears in IV regressions, implying that general education has no causal effect on individual performance in capital markets, whose heterogeneity largely reflects non-acquired ability. On the contrary, we find that education causes higher returns in the labor market (l-returns). We speculate about possible rationales for this important asymmetry.
Holm, Martin Blomhoff; Paul, Pascal & Tischbirek, Andreas (2020)
The Transmission of Monetary Policy under the Microscope
[Report Research].
Natvik, Gisle James; Fagereng, Andreas, Holm, Martin Blomhoff & Moll, Benjamin (2020)
Saving Behavior Across the Wealth Distribution
[Lecture]. Event
Fagereng, Andreas; Holm, Martin Blomhoff, Moll, Benjamin & Natvik, Gisle James (2019)
Saving Behavior Across the Wealth Distribution: The Importance of Capital Gains
[Report Research].
Fagereng, Andreas; Holm, Martin Blomhoff, Moll, Benjamin & Natvik, Gisle James (2019)
Saving Behavior Across the Wealth Distribution
[Conference Lecture]. Event
Fagereng, Andreas; Natvik, Gisle James, Holm, Martin Blomhoff & Moll, Benjamin (2019)
Saving Behavior Across the Wealth Distribution: The Importance of Capital Gains
[Conference Lecture]. Event
Fagereng, Andreas; Natvik, Gisle James, Holm, Martin Blomhoff & Moll, Benjamin (2019)
Saving Behavior Across the Wealth Distribution
[Conference Lecture]. Event
Moll, Benjamin; Fagereng, Andreas, Holm, Martin Blomhoff & Natvik, Gisle James (2019)
Saving Behaviour Across the Wealth Distribution
[Lecture]. Event
Fagereng, Andreas; Holm, Martin Blomhoff, Moll, Benjamin & Natvik, Gisle James (2019)
Saving Behavior Across the Wealth Distribution: The Importance of Capital Gains
[Conference Lecture]. Event
Fagereng, Andreas; Holm, Martin Blomhoff & Natvik, Gisle James (2018)
MPC Heterogeneity and Household Balance Sheets
[Conference Lecture]. Event
Natvik, Gisle James; Holm, Martin Blomhoff & Fagereng, Andreas (2017)
MPC heterogeneity and household balance sheets
[Conference Lecture]. Event
Holm, Martin Blomhoff; Fagereng, Andreas & Natvik, Gisle James (2017)
MPC Heterogeneity and Household Balance Sheets
[Conference Lecture]. Event
Holm, Martin Blomhoff; Fagereng, Andreas & Natvik, Gisle James (2017)
MPC Heterogeneity and Household Balance Sheets
[Conference Lecture]. Event
Holm, Martin Blomhoff; Fagereng, Andreas & Natvik, Gisle James (2017)
MPC Heterogeneity and Household Balance Sheets
[Conference Lecture]. Event
Natvik, Gisle James; Holm, Martin Blomhoff & Fagereng, Andreas (2017)
MPC heterogeneity and household balance sheets
[Conference Lecture]. Event
Holm, Martin Blomhoff; Natvik, Gisle James & Fagereng, Andreas (2017)
MPC heterogeneity and household balance sheets
[Conference Lecture]. Event
Holm, Martin Blomhoff (2017)
Monetary Policy Transmission with Income Risk
[Conference Lecture]. Event
Holm, Martin Blomhoff; Natvik, Gisle James & Fagereng, Andreas (2016)
MPC Heterogeneity and Household Balance Sheets
[Conference Lecture]. Event
Holm, Martin Blomhoff; Fagereng, Andreas & Natvik, Gisle James (2016)
