If the education loan personal debt really does depress homeownership, we might expect there become distinctions one particular with debt
Once again, in case the matchmaking were causal, we could possibly expect the possibilities of home ownership to help you ount of student loan personal debt accrued (as opposed to as a result with the effortless presence or absence of debt)
The aforementioned analyses are useful, however, provide us with absolutely nothing understanding of if there is an effective causal relationship ranging from debt and also the likelihood of homeownership. It will be easy these particular results would be totally driven by differences between debtors and low-debtors – thus best me to think there is certainly an effective causal relationship whenever there’s not. To help you disentangle that it, i together with utilized a regression techniques, named good spline, which allows us to on the other hand estimate the brand new connection between that have one loans (yes/no) and homeownership, therefore the connection between your amount of personal debt and you can homeownership, some of those with debt. Yet not, we located no proof this sort of connection. Rather, all the association i discussed above was motivated of the differences anywhere between debtors and you can non-debtors. Read more
