We analyze households' joint investment decisions for financial wealth and homes. We use a bivariate censored regression model with endogenous switching. Fixed costs or transaction costs are captured by an unobserved nonzero censoring threshold. The model allows for spill-over effects of a binding threshold for one asset on the demand for the other asset.
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Paper provided by Uppsala - Working Paper Series in its series Papers with number
1998:19.
Length: 26 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:uppaal:1998:19
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Find related papers by JEL classification: R20 - Urban, Rural, and Regional Economics - - Household Analysis - - - General R21 - Urban, Rural, and Regional Economics - - Household Analysis - - - Housing Demand
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