Modelling the Demand for Housing over the Lifecycle
AbstractThis paper models individual demand for housing over the life-cycle, and shows the implications of this behaviour for aggregate demand. Individuals delay purchasing their first home when incomes are low or uncertain. This delay is exacerbated by downpayment constraints. Higher house prices lead households to downsize, rather than to stop being home-owners. In aggregate, positive house price shocks lead to consumption booms among the old and a fall in aggregate demand for housing, whereas positive income shocks lead to consumption booms among the young and a rise in aggregate demand for housing. (Copyright: Elsevier)
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Bibliographic InfoArticle provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.
Volume (Year): 15 (2012)
Issue (Month): 1 (January)
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Postal: Review of Economic Dynamics Academic Press Editorial Office 525 "B" Street, Suite 1900 San Diego, CA 92101
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Other versions of this item:
- Orazio Attanasio & Renata Bottazzi & Hamish Low & Lars Nesheim & Matthew Wakefield, 2011. "Code and data files for "Modelling the Demand for Housing over the Lifecycle"," Computer Codes 10-53, Review of Economic Dynamics.
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
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