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It analyzes two episodes over the last four decades in Spain using fiscal data, household surveys, and national accounts to reconstruct the full wealth distribution. The study proposes an asset-specific decomposition of wealth accumulation, separating contributions from rates of return, savings, labor incomes, and portfolio choices. Results show that top wealth holders time markets and reshuffle housing into financial assets at the start of busts, with portfolio reshuffling as the key channel reducing the bottom 50% wealth share during the recent bust.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":11,"@type":70,"position":76},"https://docshare.wps.com/template/presentations/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/house-price-cycles-wealth-inequality-and-portfolio-reshuffling-abstract/302778/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/house-price-cycles-wealth-inequality-and-portfolio-reshuffling-abstract/302778.png","ImageObject",442,249,{"name":88,"@type":89},"Emma Wilson","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-26","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":76},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What is the paper’s main research focus?","Question",{"text":108,"@type":109},"The paper examines what drives wealth inequality dynamics during house price cycles, especially across housing booms and busts.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"How is Spain used in the analysis?",{"text":113,"@type":109},"Spain serves as a laboratory because it experienced two housing booms and two busts over the last forty years, with reliable statistics on asset ownership.",{"name":115,"@type":106,"acceptedAnswer":116},"What mechanism reduces the bottom 50% wealth share during the recent housing bust?",{"text":117,"@type":109},"Counterfactual simulations show that portfolio reshuffling among top wealth holders is the only channel contributing to the reduction.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},302778,1790461888,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":8,"category_name":11,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":76,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":141},3848291630094,"https://eur-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45","House Price Cycles, Wealth Inequality  \nand Portfolio Reshuffling ∗ Clara Martínez-Toledano June 2022  \nAbstract  \nThis paper studies the determinants of wealth inequality dynamics during housing boomsand busts. I examine two episodes over the last four decades in Spain by combining fiscal data with household surveys and national accounts to reconstruct the entire wealth distribution. I then develop a new asset-specific decomposition of wealth accumulation that makes it possible to disentangle the importance of differences in rates of return, savings, labor incomes and portfolio choices across wealth groups in explaining wealth inequality dynamics. My analysis documents that top wealth holders time better the market, saving a larger share on housing during booms and reshuffling their portfolio away from housing towards financial assets at the beginning of busts. Counterfactual simulations show that portfolio reshuffling among top wealth holders is the only channel that contributed to reducing the bottom 50% wealth share during the recent housing bust. Finally, I document that this heterogeneity in portfolio choices is consistent with the existence of large differences in portfolio adjustment frictions across wealth groups, mainly coming through differences in the composition of housing. Taken together, these results reveal that portfolio reshuffling among top wealth holders is an important driver of short to medium term fluctuations of wealth inequality.  \nKeywords: Housing, Wealth Inequality, Asset Prices, Portfolio Reshuffling  \nJEL: D31, H31, G51  \n∗ Contact information for the author: Clara Martínez-Toledano, Imperial College London, South Kensington Campus, London SW7 2AZ, United Kingdom; email: [c.martinez-toledano@imperial.ac.uk](c.martinez-toledano@imperial.ac.uk) ; phone: +44 (0)207 594 9690. I want to especially thank Thomas Piketty for his guidance and encouragement. I am also very grateful to Facundo Alvaredo, Olympia Bover, Axelle Ferriere, Matthieu Gomez, Laura Hospido, Camille Landais, Benjamin Moll, Emmanuel Saez, Joseph Stiglitz, Daniel Waldenström and Gabriel Zucman for helpful discussions, as well as participants at the NBER SI, CEPR Conference on Household Finance, EEA Congress, IIPF Congress, SEM Conference, Warwick Workshop on the Micro and Macro of Inequality, EAYE Workshop on Housing and Macroeconomics, ECB Conference on Household Finance and Consumption, ECINEQ Meeting, and seminars at Paris School of Economics, Imperial College London, London School of Economics, Bank of Spain, LMU Munich, University College London, University of Barcelona, University of Bonn, University Carlos III, University of Mannheim, University of Oxford, University of Toronto and University of Warwick. I acknowledge financial support from Fundación Ramón Areces, Bank of Spain and Fundación Rafael del Pino at different stages of the project. All errors are my own.  \nI Introduction  \nThe rapid rise in aggregate wealth levels (Piketty and Zucman, 2014) and wealth disparities (Alvaredo, Chancel, et al. , 2018) across advanced economies in recent decades has spurred a renewed interest in understanding the evolution and determinants of wealth inequality. While the bulk of the empirical literature has focused on the long-run trends in wealth inequality (stressing the role of inheritance, multiplicative cumulative random shocks, etc.), very little is still known on the short to medium-term fluctuations in wealth inequality and their determinants.  \nThe short to medium-term interactions between aggregate wealth and the wealth distribution are particularly important during housing booms and busts. Housing is the main asset in most individual portfolios (Saez and Zucman, 2016 ; Garbinti, Goupille-Lebret, and Piketty, 2021) and it forms the lion’s share of total return on aggregate wealth (Jordà et al. , 2019) . Moreover, the recent rise in household wealth to national income ratios has been mainly driven by capital gains on housing (Piket","cbCaikEBC4Pl093j","https://ap.wps.com/l/cbCaikEBC4Pl093j","pdf",3067322,96,"English","# Abstract\n# Introduction","[{\"question\":\"What is the paper’s main research focus?\",\"answer\":\"The paper examines what drives wealth inequality dynamics during house price cycles, especially across housing booms and busts.\"},{\"question\":\"How is Spain used in the analysis?\",\"answer\":\"Spain serves as a laboratory because it experienced two housing booms and two busts over the last forty years, with reliable statistics on asset ownership.\"},{\"question\":\"What mechanism reduces the bottom 50% wealth share during the recent housing bust?\",\"answer\":\"Counterfactual simulations show that portfolio reshuffling among top wealth holders is the only channel contributing to the reduction.\"}]","House Price Cycles, Wealth Inequality and Portfolio Reshuffling - Abstract | PDF",1789796851,34]