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The future of American homeownership is being pushed in contradictory directions by demographic changes. The aging of … the Baby Boomers would support higher levels of homeownership, but the increasing minority share of the population and the … persistent racial gap in homeownership acts to reduce homeownership. Layered on top of these demographics is an uncertain …
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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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