Homeownership and the Life Cycle: an Ordered Logit Approach
AbstractThis paper presents an ordered logit approach to model the optimal timing of buying a house in the life cycle. The model is applied to three recent Belgian household budget surveys. We find that households postpone homeownership or choose to be lifelong tenant due to an increase of the transaction tax rate, the real interest rate on mortgages and an indicator for the evolution of real house prices. Expenditures on nondurables, on the contrary, have a positive impact on (early) homeownership.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0308.
Date of creation: Mar 2003
Date of revision:
homeownership; life cycle; transaction tax.;
Other versions of this item:
- Bart Capéau & André Decoster & Frederic Vermeulen, 2003. "Homeownership and the life cycle: an ordered logit approach," Public Economics Working Paper Series wplclog, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-12 (All new papers)
- NEP-DCM-2008-04-12 (Discrete Choice Models)
- NEP-URE-2008-04-12 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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