This paper analyses the optimal refinancing decision of an agent whose only asset in the portfolio is the house where she lives in the context of a life-cycle model. The mortgage is modelled as an adjustable rate contract covering the remaining life of te house owner. Thus, refinancing concerns...

The interaction between housing wealth, the financial portfolio of the consumer and consumption is a live issue. Life cycle models with closed form solutions under uncertainty are hard to find. In this paper we find analytical solutions for the effects of house price uncertainty and employment...

We consider the interaction between the risk of unemployment, random house prices, consumption and savings. A critical decision is that of refinancing house purchase, up to 100% mortgages are possible. There is also a fixed transaction cost of refinancing. In a CARA framework we derive the value...

Major health shocks can have far-reaching consequences on the welfare of an individual's support and emotional network. This paper investigates both long-term and short-term spillovers of a major non-communicable health shock, namely a cancer diagnosis (CD), on the health and well-being of an...

Research on the consequences of income inequality on subjective well-being has yielded mixed results, including a lack of a statistically significant correlation. We propose that this inconsistency may arise from the failure to differentiate between perceived and actual income inequality....

We use recently collected retrospective survey data to estimate the displacement effect of pension wealth on household savings. The third wave of the Survey of Health, Ageing and Retirement in Europe, SHARELIFE, collects information on the entire job history of the respondent, a feature missing...

Research on the consequences of income inequality on subjective well-being has yielded mixed results, including a lack of a statistically significant correlation. We propose that this inconsistency may arise from the failure to differentiate between perceived and actual income inequality....