Again, should your relationships was in fact causal, we could possibly predict the possibilities of owning a home to help you ount out-of education loan debt accumulated (in place of responding on easy visibility or lack of debt)
The above analyses are of help, however, give us little understanding of if or not there was a good causal connection anywhere between personal debt in addition to probability of homeownership. It is possible these particular abilities will be entirely passionate of the differences when considering debtors and you may non-debtors – for this reason leading us to consider you will find a beneficial causal relationships whenever there’s not. In order to disentangle so it, i as well as made use of a beneficial regression approach, named an effective spline, enabling us to on top of that estimate the brand new relationship between having one debt (yes/no) and homeownership, and connection between the amount of debt and you can homeownership, one of those indebted. But not, i found zero proof this association. Alternatively, most of the connection i described a lot more than was motivated by the distinctions between debtors and you will low-debtors. Continue reading
