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A Life-cycle Model with Housing, Portfolio Allocation, and Mortgage Financing

Nichols, Joseph - Econometric Society - 2004

. First, housing is explicitly modeled as both a consumption and investment good, as opposed to examining just one aspect in … Retirement Survey. As a result, the model proves that the “over-investment” of housing is not inconsistent with the behavior of … rational, forward-looking agents. The model is also able to capture the negative correlation between the housing share and …

Persistent link: https://www.econbiz.de/10005328942

Mortgages as Recursive Contracts

Marquis, Milton H.; Krainer, John - Econometric Society - 2004

Mortgages are one-sided contracts under which the borrower may terminate the contract at any time, while the lender must commit to honoring the terms of the contract throughout its life. There are two aspects to this feature of the contract that are modeled in this paper. The first is that the...

Persistent link: https://www.econbiz.de/10005328972

The Strength and Nature of Bequest Motives in the United States

Lee, Yoon G.; Horioka, Charles Yuji - Econometric Society - 2004

In this paper, we analyze the strength and nature of bequest motives in the United States using data from the 2000 Health and Retirement Study (HRS). The results of our analysis suggest that bequest motives are very strong in the United States and that they are altruistically motivated. This...

Persistent link: https://www.econbiz.de/10005342297

Consumer Time Inconsistency: Evidence from a market experiment in the credit card market

Shui, Haiyan; Ausubel, Lawrence M. - Econometric Society - 2004

This paper analyzes a unique dataset, which contains results of a large-scale experiment in the credit card market. Two strange phenomena that suggest time inconsistency in consumer behavior are observed: First, consumers prefer an introductory offer which has a lower interest rate with a...

Persistent link: https://www.econbiz.de/10005063723

Precautionary Saving, Borrowing Constraints, and Fiscal Policy

Park, Cheolbeom; Bishop, Thomas - Econometric Society - 2004

Recent empirical studies suggest that the average marginal propensity to consume (MPC) has declined. This paper explains the declining trend of the MPC with a standard representative consumer model where borrowing constraints become more relaxed as suggested by data. With an increase in...

Persistent link: https://www.econbiz.de/10005063766

Credit Crunches and Household Welfare: The Case of Korean Financial Crisis

Sawada, Yasuyuki; Kang, Sung Jin - Econometric Society - 2004

The financial crisis in 1997 caused serious deterioration of the Korean economy. We examined the credit crunch in Korea and how it affected household welfare. With household panel data from 1996-1998, we estimated a switching regression model of a consumption Euler equation, which is augmented...

Persistent link: https://www.econbiz.de/10005702753

Homeownership as a Constraint on Asset Allocation

Cauley, Stephen; Pavlov, Andrey - Econometric Society - 2004

While home ownershipt provides a great deal of personal and social benefits, it poses a substantial constraint on individuals' asset allocation.

Persistent link: https://www.econbiz.de/10005328930

Household Risk Management and Optimal Mortgage Choice

Cocco, Joao; Campbell, John - Econometric Society - 2004

Housin

Persistent link: https://www.econbiz.de/10005328986

Household Risk Management and Optimal Mortgage Choice

Cocco, Joao; Campbell, John - Econometric Society - 2004

Housin

Persistent link: https://www.econbiz.de/10005329014

Housing Construction Cycles and Interest Rates

Ellis, Luci; Berger-Thomson, Laura - Econometric Society - 2004

Housing investment is one of the most cyclical components of GDP. Much of that cyclicality stems from the sector …. Although the housing sector is generally considered to be more interest-sensitive than the economy as a whole, the degree of … this sensitivity seems to vary between countries and through time. In this paper, we model the housing markets in Australia …

Persistent link: https://www.econbiz.de/10005342147