How Homeownership Influences Portuguese Households’ Investment Choices Across Different Levels Of Risk?

A two-part fractional model, using pooled cross-section data from 2013, 2017 and 2020, was estimated to study the effects of homeownership in Portuguese households’ investment choices, across different levels of risk: high, moderate and low. The findings reveal both a crowding-out and a diversification effect of homeownership on the proportion of risky and safe investments, respectively. However, homeownership does not affect the proportion of moderate risk investments.