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risks in retirement. Our life cycle model captures these links in order to explain why homeownership in Germany is so low …. Our simulation results indicate that the public long-term care as well as the pension system reduce the homeownership rate …
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We provide explicit solutions to life-cycle utility maximization problems simultaneously involving dynamic decisions on investments in stocks and bonds, consumption of perishable goods, and the rental and the ownership of residential real estate. House prices, stock prices, interest rates, and...
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