Households' Portfolio Behavior in France : the Role of Housing
AbstractThe two-dimensional aspects of dwellings occupied by their owner, consumption and investment, make the analysis of households' portfolio choice and the analysis of housing purchases more difficult. But it seems difficult to analyze portfolio decisions without taking account of owner-occupied housing that, for instance, influences greatly assets demand over the life cycle. In this paper we estimated a portfolio choice model where the different dwellings are defined as assets. First, housings show some specificities in households' wealth accumulation. The probability of holding primary residence follows a hump-shaped age profile, well interpreting within the life cycle hypothesis. Moreover, housing assets are in households' portfolios for a quite low level of wealth while transferable securities attract primarily the wealthiest households. Then, we showed that it seems difficult to analyze portfolio decision over the life cycle without taking account of the process of accumulation of owner-occupied housing. Especially, risky assets demand should be greatly influenced by attitudes towards home property. For instance, financial portfolio of young (less wealthy) households would be less risky than older people if the formers want to be homeowner because of preferential tax treatments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 2001-10.
Date of creation: 2001
Date of revision:
Publication status: Published in Review of Income and Wealth, 2001, 47, pp. 489-515
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.