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generates a new speculative motive for homeownership. In particular, we show how good and bad housing market cycles affect … homeownership rates, leverage, stock investments and consumption and can explain empirically observed household behavior during …
Persistent link: https://www.econbiz.de/10008748110
Economic theory predicts that home ownership should have a negative effect on risk-taking in financial portfolios … divergence between the theory and data. First, it is critical to distinguish between home equity wealth and mortgage debt, as … portfolio choice, as theory predicts …
Persistent link: https://www.econbiz.de/10013038822
Economic theory predicts that home ownership should have a negative effect on risk-taking in financial portfolios … divergence between the theory and data. First, it is critical to distinguish between home equity wealth and mortgage debt, as … portfolio choice, as theory predicts …
Persistent link: https://www.econbiz.de/10012462655
We show that characterizing the effects of housing on portfolios requires distinguishing between the effects of home equity and mortgage debt. We isolate exogenous variation in home equity and mortgages by using differences across housing markets in house prices and housing supply elasticities...
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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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