# **1. Introduction**<sup>1</sup>

Household sample surveys are invaluable tools for understanding economic dynamics, social structures, and the distribution of resources within societies. Among the various indicators collected in these surveys, wealth stands out as a fundamental indicator of economic well-being and household stability.

The inclusion of wealth data in household surveys is crucial for several reasons. Firstly, wealth provides insights into the economic status and living standards of households, providing a more comprehensive view beyond income alone. While income reflects the flow of resources over time, wealth captures accumulated assets and savings, providing a measure of long-term financial security and capacity for investment. Additionally, wealth data allow policy makers, researchers, and analysts to assess disparities in asset ownership, intergenerational wealth transfer, and access to economic opportunities, thereby informing targeted interventions and policy initiatives aimed at reducing inequality and promoting economic inclusion.

Net wealth encompasses tangible assets such as land, real estate, valuables, and financial instruments like savings accounts and stocks, while debts constitute the negative component. Traditionally, the real items considered in household surveys are those for which households hold full property rights. However, this approach may not capture the full spectrum of resource ownership held by households.

Solely focusing on assets with full property rights may overlook significant aspects of wealth accumulation and resource utilization. In many contexts, individuals or households may possess partial rights or entitlements to certain assets, such as in the case of usufruct contracts, where individuals hold the right to use and enjoy property owned by others. Neglecting the patrimonial value of such assets can lead to a distorted understanding of wealth distribution and economic well-being, particularly in communities where informal arrangements or non-traditional property rights prevail.

This paper aims to address the gap in wealth assessment methodologies by advocating for the inclusion of assets with partial rights in household surveys. Specifically, we will explore the importance of taking account of use rights, such as those conferred by usufruct contracts, when estimating household wealth. By incorporating these nuanced dimensions of asset ownership, we seek to provide a more comprehensive and equitable framework for assessing wealth that better reflects the socio-economic realities of diverse communities. An application to the Italian case offers the opportunity to assess a significant impact on wealth distribution, even in a country where this kind of phenomenon is relatively uncommon.

# **2. Some general reflections on use rights**

Household wealth is traditionally divided into two components, real and financial. Financial wealth represents the net value between the claims (e.g., the bank deposits) and the obligations (e.g., the debts) that the household has towards other households or economic entities. By definition, for every claim and obligation held, there exists a corresponding obligation and claim of the same amount held by someone else.

The notion of real wealth, instead, is inherently linked to the rights over resources with an economic value. Being an owner of real assets (e.g., apartments, land, livestock) usually means being

> 1 We would like to thank Luigi Cannari for the suggestions provided on an earlier version of the paper. The opinions expressed in this paper are of the authors alone and do not necessarily represent the views of our institutions.