Again, whether your relationship was in fact causal, we might anticipate the possibilities of home ownership so you’re able to ount away from student loan financial obligation accrued (unlike in response for the easy presence or lack of debt)

The above analyses are useful, however, provide us with little insight into if or not discover a beneficial causal relationship anywhere between obligations as well as the probability of homeownership. You’ll be able why these abilities will be entirely inspired of the differences when considering debtors and you can low-debtors – hence top me to think there is a beneficial causal dating when there’s not. In order to disentangle this, we including utilized a beneficial regression method, titled a beneficial spline, which allows me to simultaneously estimate the newest connection anywhere between with any debt (yes/no) and you will homeownership, and the relationship involving the amount of personal debt and homeownership, one particular in financial trouble. (more…)