We set up and solve a rich life-cycle model of household decisions involving consumption of both perishable goods and …, and portfolio constraints. The model features habit formation for housing consumption, which leads to optimal decisions …) that perishable consumption is more sensitive to wealth and income shocks than housing consumption, and (iv) that non …

We solve a rich life-cycle model of household decisions involving consumption of perishable goods and housing services …, habit formation for housing consumption, stochastic labor income, stochastic house prices, home renting and owning, stock …-dependent housing expenditure share, (iii) non-housing consumption being significantly more sensitive to wealth and income shocks than …

We solve a rich life-cycle model of household decisions involving consumption of perishable goods and housing services …, habit formation for housing consumption, stochastic labor income, stochastic house prices, home renting and owning, stock …-dependent housing expenditure share, (iii) non-housing consumption being significantly more sensitive to wealth and income shocks than …