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The authors estimate a structural model of optimal life-cycle housing and consumption in the presence of realistic … labor income and house price uncertainties. The model postulates constant elasticity of substitution between housing service …-sectional and time-series household wealth and housing profiles from the Panel Study of Income Dynamics quite well and suggests an …
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Supersedes Working Paper 09-7. We estimate a structural model of optimal life-cycle housing and nonhousing consumption … between housing service and nonhousing consumption and explicitly incorporates a housing adjustment cost. Our estimation fits … the cross-sectional and time-series household wealth and housing profiles from the Panel Study of Income Dynamics (1984 to …
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This paper incorporates home production into a dynamic general equilibrium model of overlapping generations with endogenous retirement to study Social Security reforms. As such, the model differentiates both consumption goods and labor effort according to their respective roles in home...
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